The Los Angeles Times ran a great article on Sunday that just reiterates the fact that a) real estate is an extremely LOCALIZED market, and b) it pays NOT to let the media get you all whipped up into a froth, because they often oversell a trend, and/or are a day late and a dollar short on reporting them.

Many buyers have become very frustrated and disenchanted with the market right now after finding out that, despite what the broad strokes painted by the national media would indicate, sellers are for the most part NOT desperate, NOT having fire sales, and are NOT about to give their properties away for a song.  It is a scenario I've seen play out more than a few times with potential buyers I've spoken to.  Especially buyers from out of town, who somehow have it in their heads that they are going to waltz into a $900,000 house in West Hollywood, offer $350,000, are going to be greeted as liberators by the seller.

Not.  Gonna.  Happen.

There are great deals to be had out there if you're realistic AND patient.  There are many properties out there listed at as much as 40% less than what they sold for few years ago.  Realism and tenacity will take you far in this market!