No. Real estate home values are not decreasing. Loan rates are still at a record lows as compared to previous years. The slow market is due to a dramatic decrease in 100% loan investment programs and an increase in ARM adjustments being activated.
As for price reductions on home resales, sellers still need to sell there homes and are reducing listing prices due to the competitive market. Now is a great time to buy real estate on a fixed term loan program. Take advantage of the competitive market now, for it is a buyers market!