Just judging by my cluster--my next door neighbor's house is now under contract, after having been on the market maybe 30-45 days. That's much better than a year ago. Don't know if they got their asking price ($277,000), but if they did the owner made a profit. I think the bank repossessed it around Jan. 2008, someone in the city picked it up for about $180,000, rented it for a year to college students, then spent a lot of money fixing it up. So he perhaps made $50-60,000 on his investment.
Prices in the area seem, according to zillow, to be bimodal--a bunch of houses below $200K and some now selling for $275K.