At least that's the way it looks based on the numbers thus far. Easpecially in the condo and townhome market. There is an estimated 4 year supply of new construction homes in this category so if you can't find a good deal on one as a buyer, be prepared to own it for a few years before you try to sell it.
Atlanta real estate news is not all quite as bad as this, but, I just don't see inventories coming down far enough to not see some additional declines in pricing before we are finished. It would be nice to hear nothing but "the wind is at our back" or "it's all downhill from here", but, that is just not the case. It looks like we are in for a little bit more of a ride down this road with excessive inventory before things begin to level off.
However, there are some important points to note about the market. Some basic and fundamental truths about real estate which hold true in all markets. Good homes will sell and homes that are not as good MUST be price appropriately to have a chance to sell in this market. Currently I have 2 homes under contract and both of them had multiple offers. One had an offer on another house which also had multiple offers. We are also working on another offer to sell which will lead to another purchase so it isn't like people aren't buying anything. They just are only buying good houses or houses that are priced aggresively based on their condition. If you plan on listing your home this spring, be prepared as it probably won't sell for the same amount as it would have last year.