Is The Real Estate Market Stabalizing?

With home sales around the nation rising 5.5% in September (despite a more than 20% drop in prices), it would seem we might be approaching a bottom. However, accouding to several web site statistics that we measure on a number of real estate web sites are actually heading down in October, suggesting fewer searches for homes and thus fewer interest. Interest in real estate does seem to be pacing the financial crisis, suggesting continued slowness but also growth early next year. I would love to know what is happening in your area. Do you think the prices will continue to go down? Will their be more foreclosures and shortsales in 2009. When do think the market will bottom and recover?