It's on about a 6 year cycle so most agents that are here for the long run and can see that they will be dealing with you for more than 5 minutes will admit that the market should drop substantially in late 2007- early 2008 as per the cycle as it's been doing repeatedly for the last 40 odd years.
If you're here for a while it doesn't really matter, most CX people forget that they haven't made a dime on their property until they actually sell it and go rent somewhere until the market drops and they buy back in again. Leaping up and down because the bank valuation is up 20% on what you paid isn't really the same as cash in your pocket.