Well that is not completely true. 

But if you are out house hunting you may be surprised that the market is not the way the media portrays it. 

Why you ask?   Why does it seem that Lynchburg Va area real estate does not seem that depressed? 

It is because when the real estate bubble burst (for lack of a better word) it did not hit the mid-priced homes, it really effected the higher priced homes much more. 

In areas where homes sell for less than $250,000 there are fewer discounts to be found.  Even the foreclosure market has slowed and lenders are supporting market stabilization often releasing only a few homes at a time in order to not flood the market. 

I think sometimes people over react to the housing statistics and think they can come in and offer 20 percent below asking price.  This is not going to work in this market. Once buyers get realistic they can successfully become homeowners.  If you are considering making an offer ask a REALTOR to give you a market anaylsis to determine what homes in the area have sold for and base your offer on those numbers not some numbers you pick off the top of your head randomly.  All sellers are not in financial binds that they need to dump the house just for any price they can get.

Keep in mind you may not be the only one making an offer on the property as I have run into situations many times where there are multiple offers on one house and in some cases the house sells for more than the asking price.

Not meaning to discourage you in going out there and looking for a bargain and get all you can for your money but make smart offers.  Get educated and be a savy buyer.