Today's Wall Street Journal is arguing the following is happening:

A glut of foreclosed homes of historic proportions is starting to drive down U.S. home prices faster as lenders put more properties on the market and buyers show signs of interest.The ability of America's lenders to manage this fire sale will be crucial to determining how long the housing market stays in the dumps — and how quickly blighted neighborhoods can heal. The oversupply is severe: In some major markets, including Las Vegas and San Diego, foreclosure-related sales have accounted for more than 40% of all sales in recent months.

Maui real estate is, however, a different matter. While Riverside California and Denver and Chicago are seeing large numbers of disclosures, here in the Wailea area, that is simply not governing the market. That isn't to say that there isn't the occasional troubled owner, but their are nowhere near enough of them to drive prices down.