RMLS and national sources such as Inman News are reporting a stabilization of inventory.  That's true, to an extent.  Supply and demand are pretty much in balance.

I expect that to change. The reason for the "balance," IMO, is that a lot of people who would be selling in anything approaching a normal market have held off because of prices.  But with a possible uptick in activity come spring, I predict a lot more homes will come on the market.

Unfortunately, there won't be enough buyers. If you're buying a home in Portland Metro, good news, because there will be a much better selection than now.

If you're selling a home, it's good in the sense that it won't be as bad as it was in 2008-09.  The tax credits, which I think are bad for the country, are good for business and good for sellers, especially with ow mortgage rates.  Plan on a long market time and be realistic about price. 

 In some, and maybe a lot of cases, I may recommend you not be too quick to drop the price as long as you were sharp in the first place. A slow sell isn't always because of price. A long market time is just a fact on the ground in most cases.

Come summer, though, I do not think sales will hold up if mortgage rates, as generally predicted, go up. When that happens, prices will have to dip a bit more, especially with the tax credits expiring.

Overall, I'm guessing prices in Portland Metro will drop 6% to 10% in 2010, but that's on average.  Some areas have dropped about as far as they're going to. But there just aren't enough buyers out there because of the economy, mostly. Foreclosures and short sales will continue to negatively impact prices.