Check out the Charlottesville Area Association of Realtors' year end report which is attached.  The bottom line?  Sellers need to be aggresively priced and buyers still have many homes from which to choose.  There may still be a slight reduction in home prices as we head into 2011 but the wild card will be interest rates.  Buyers who hope prices will drop more will lose the benefit of the decrease if interest rates go up.