It's still brutal here! I live near Berkeley and everything on the market was built in the 30's or 40's and while it is taking longer to sell everything is still selling. My girlfriend and I make over 100 K and we are not even in the game at this point. It makes better business sense for us to rent right now. We have a 3 bedroom all utilities included for $1600 per month which for the Bay area isn't half bad.
That *isn't* bad for this area.