I'd say we're in the beginning of a slippery slope downwards. As such, sellers are still going for the best price they can get; good houses with somewhat attractive prices will still sell, but you will probably still be buying for too much. IMO, people will begin to budge later in the summer, when things don't go as smoothly as they thought. Sellers with the garbage homes will begin to panic and cut greatly, which will put pressure on the nicer stuff. This will probably, likley, last until the 2009 season.
As for your broker, who knows, it is a good time to buy compared to the last two years.