I'd like to say things are picking up. I'd like to say that, but January 09 stats on sold single family homes in Leon County, Tallahassee, are 69 as compared to 111 for January 08. There does seem to be increased activity, but buyers are still looking longer, trying to find that house that works for the money. They typically are shopping longer now. If their rental lease is up in a few months, they are looking now, instead of waiting until it's time to move.
Some sellers are also recognizing if they want to sell, it must be priced right. This having room for negotiation isn't really required if the price if lower than any of the competition and if it's not lower than the competition, they are not getting offers.
So sellers, don't price on the high side, price on the low side and get a price close to your asking one.