Seems like it. My brother is having trouble selling their house (Phoenix AZ), and housing prices where I live (Houston, TX) are stagnant. Importantly, time on market has increased, although I only have ancedotal evidence for Houston (my friend living in our complex sold their condo in a week), in Phoenix according to this report, the time on market in 2005 was one week, now it's close to 60 days. That's okay, markets fluctuate up and down, and real estate is no exception. Almost all homeowners have seen increasing values in the last few years, for us almost 100% increase in 5 years. It depends on the strength of the economy, the amount of new construction, the demand for homes, the amount of homes on the market, etc. Lots of factors. Around here there is some new construction, but those condos are extremely pricey (400k). So mostly when people look for a place it's an existing home. Anyway i expect some difficulty selling our place but it won't be too bad; the location is good and the unit is in good shape more or less (it's 22 years old).

Update: HAR says the real estate market is still very hot (as of May 2006)

Indications: Increased median sale price of single family house (5.6% over last year) (half of homes sold for more and half sold for less)

Increased average sale price (8.2%) (this tends to be scewed since many homes sell for cheap while a few homes are very expensive)

Decreased inventory (12.8%), meaning (essentially) that homes are selling faster than they were last year. It's really an indication of the amount of homes on the market and how long they stay on the market. Since the number of properties sold increased from last year (11.6%), this indicates that homes are selling quicker than they were last year.

The trend continues for condos, the median price is 120k, while the average is 152k (which is about as high as for real homes, which leads to the questino, why would you buy a 800 sf condo instead of a 2500 sf home? Answer: location location location.