I haven't noticed a "drastic" drop in prices but I have, however, noticed your typical decline in price and sales that occurs in the fall to winter seasons. Mix that in with the small increase in mortgage rates and the market is gradually equalizing.

Keep in mind that summer is typically a high season where more buyers are out and about looking to move because it is easier between school years. In return, sellers can ask more because they have more potential buyers. Also there is a small decrease in price that is directly proportionate to the recent increase in mortgage interest rates.

Again, this is probably the market leveling out and there is no need to panic... unless you are a real estate agent looking to drum up more listings. ;)