In today's market everyone is stating how there market is down. I have found from my MLS stats that only certain areas are facing problems. Areas such as Martin, TN have actually had an increase year over year in value.
2008 # sold $volume avg price 2007 sold volume avg price
Union City 21 1,645,650 78,364 35 3419578 97702
Martin 50 6,697,635 133,953 32 4053600 126675
Dresden 8 549,250 68656 19 1650950 86892
The average year over year 2nd quarter prices have increased in Martin, TN by 6.5% In other areas in Northwest TN and surrounding areas of Kentucky prices have fallen per the MLS data from 1 to 10% depending on the market.
Just as stated in your real estate study course before taking the state exam. Real estate is a local business. Prices differentiate from city to city and from neighborhood to neighborhood.