I just downloaded the Cincinnati MLS statistics.

WEIRD.
Average sale price for homes sold has gone from an average of $190,000 in June of last year to just over $132,000 now.

Does that mean that home prices have dropped off that much?  I don't think so. I think what it shows is two-fold:

1. A lot of what's selling is at the lower end of the market.
   
2. The Obama tax incentives are working.

First time homebuyers tend to buy lower-priced homes. In my experience, only about 1 in 10 first time homebuyers around here starts with a home in the $200K range. Most are well below $200K.

Last summer, there were no first-time buyer incentives. So the market was selling as per normal. Now, people are taking advantage of what I call "The Trifecta" - the combination of $8000 tax credit, interest rates in the 4.5-5.5% range, and extremely low home prices. And this is where all the volume is in the market right now.

The Cincinnati Real Estate market has historically been pretty steady at 2-4% increase per year.  The charts you can download at the link above show a pretty big year-over-year variance in that trend.