This is an interesting article. It doesn't necessarily come to the same conclusion as I do but interesting just the same.
The article talks about depressed real estate markets around the country and also talks about percentages of discounting from asking price to selling price in different markets. In the end the conclusion is that some markets are only showing less discounting because sellers (and I guess with the help of brokers) are learning to price listings closer to actual market values.
However, in a falling market it almost doesn't matter what the price is because no one is stepping up to make any reasonable offer. So, in my opinion if the discounting is decreasing that can only mean that the markets, even the distressed ones, are beginning to find a price floor. There might still be further price erosion but I imaging that the erosion is slowing and perhaps ending for good...at least in this cycle.
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