For the past year, close-in urban neighborhood real estate has been considered more valuable in Seattle and Portland, at least compared to more distant suburban developments. Now, that may not be holding as true with a 15 percent October drop in King County prices reported in the Seattle Times. I would guess that a greater portion of short sales and foreclosure resale is the driving factor, but the last paragraph is interesting— also noting a trend toward smaller homes since the price per square foot did not fall nearly as much as the average price.