In my opinion, not until 2014 at the earliest. I say this for several reasons.Firstly, mortgage money is still only available for those with outstanding credit.  That means that many people are still locked out of the mortgage market.  Secondly, there is a large supply of homes for sale. In the LowerHudsonValley the area in which I work, most neighborhoods have one to two years supply of homes for sale.  This large supply will keep property values down until that oversupply is gone.  Third, foreclosures and properties that are about to go into foreclosure are reducing values.  There are two million homes presently in foreclosure and another two million homes going into foreclosure.

Therefore, it is likely that there will not be a turnover in values over the next few years. The New York Times talks about increasing values, but it has not hit the Lower Hudson Valley as of yet.