A bubble in the real estate market??

Has everyone else noticed what I have been noticing  - at least within our local market here in St. Augustine? The phones are ringing and customers are coming out of the woodwork. Lots of pent-up demand...easing up on the loans (MetLife is offering some extraordinary rates on jumbo loans which you can now get up to 2million! I heard that there are 750 foreclosures waiting in the wings in St. Johns County. However, some local experts believe we have really finally come to the bottom. we may stay there for awhile while these distressed properties get disposed of, but the general feeling is one of better than cautious optimism!! any thoughts?