It "feels" better out there lately, with Open House visitors saying they intend to buy before year's end, and showings on my listings continuing at a good pace. Sellers are getting realistic about pricing. I'm having an easier time getting sellers to think about their actual profit between what they paid and what we can sell at now, instead of focusing exclusively on the money they "lost" because of recent price slips.
But the numbers don't support the feeling. Yet. I expect that open housers who say "before the end of the year" will really end up buying in early 2008. Day to day life tends to intervene and things get away from us unless there's a sense of urgency.
There's not much in today's housing market to cause buyers to hurry. Rates remain historically low, inventory is rising, prices continue trickling down and there's general uncertainty in the broader marketplace. Toss in concerns over the Iraqi war and presidential politics, and buyers have good reasons to sit on the sidelines with very few good reasons to jump.

Fingers crossed!