Inspected a 2 bedroom, 2.5 bath townhouse in Allamuchy,NJ. Located over 60 miles from Manhattan, prices in this area (Warren County)are outside the direct influence of NYC housing values.  What I found:16 similar units currently on the market and 15 sold last year, median values fell from $255,000  in 2007 to $234,000, in'08, a decline of 8%. What is most interesting, is even this far from NYC  prices have not fallen lower. Also, inventory appears to be normal  with only 1 year of supply at this time.  It seems the demand for "affordable" housing alternatives is still strong even if prices are tending down.