While most of the country is seeing downward pressure on real estate, the Northwest is still moving up in prices. The local radio station KPLU has a good show in MP3 format up explaining the situation:

http://publicbroadcasting.net/kplu/news.newsmain?action=article&ARTICLE_ID=1123640§ionID=1

The northwest is a bright spot in an otherwise faltering national housing market. When stocks took a dive last week, many analysts blamed it on mortgage woes and dramatically falling home prices around the country.
Yet housing prices in the greater Seattle area continue to rise.
As KPLU business and labor reporter Bellamy Pailthorp explains, the northwest economy is often out of synch with national trends.

So to the many buyers looking to jump into a buyers’ market, don’t expect to low-ball Seattle area homeowners, unless they are asking way too much for their homes. The reality is different here in the Northwest. That’s not to say that it’s not easier to buy a home in the area than it was last year, it is. But it’s still not easy.