Time to play... How's your housing market (houses, buyers)

[a private person]

I've been listening to the statistics being put out recently by various groups. Realtor Association, Federal Government, State Government, Newspaper, etc. As I find it very hard to believe what these "experts" and "officials sources" have to say, I'm asking everyone out there to comment on how the housing market is doing in their own home town.

Here on Long Island, the market is not doing well. In some towns, mostly those in the "upscale" areas, prices are dropping (as much as 30% so far) and houses are still not moving well. Of course in those areas the prices are still so over the top they'll likely fall more before they approach "reasonable".

In the less affluent towns here, prices aren't dropping and houses aren't moving. I theorize that on that end of the market, people have lower incomes and the banks aren't willing to carry the risk at this time.

It is hard to tell whether the slow down is bank based or whether buyers are waiting for prices to bottom out.

What have you observed in your town?