Ir really depends on seller desperation. Still a lot of good deals out there.
You can easily haggle with a private owner, specialy when the bike is paid off.

 

my friend traded in a really nice 05 lowrider he had it fully loaded with optins chromed out thousands he went down to dealer they said it diden`t matter about extas the bike was worth the same either way, so he made a deal he had to wait for them to get bike ready he had accories added, took his bike home took all the extra`s off, when he went back two days later, made the deal mgr diden`t go out and look at his bike, salesman just took it into back, than he rode off, two days later salesmanager called and said where are all the extras he said you guys diden`t care about those it was worth the same, long story short he kept the parts and the dealer was pissed threated to sue but in long run he made out sold parts for 2000 grand he never went back to that particuliar dealer thou

 

Just to comment on an area I do follow pretty closely, EBay prices and sales of used HD are way off from even a year ago. Lots and lots of bikes that don't make the reserve price or get no offers at all. The thing is that there is still an issue of the local market maybe being better than the overall national one. In my area (Spokane WA) the craigslist prices are ridiculous. I'm talking about 2000 RKC for $12,000 ridiculous. I can't say if they are selling but people around here think their bikes are made of gold. Another one, 2002 Ultra $18,000. While I don't know if these guys are selling their bikes for anywhere near these prices, I know that I would not buy a used HD in this local area.

 

To answer the original question, yes the used bike prices are falling and IMHO will continue to fall. There will always be the ones who are trying to recoup the money invested (or spent) and they probably won't sell, unless the "right" buyer comes along. Then there are others who don't want the hassle of showing their bike and dealing with window shoppers and will list it low to sell it fast. Or list it low because they need the cash ASAP for other obligations.