citydweller – I would advise you to ask them to visit this site and others like it. You can also send them to Jim’s website. Contrary to what everyone says there are a few realtors out there who do have views that are not unrealistic.
These friends ultimately will make thier own choice regardless of your advice. However if you have them perhaps view what some other realtors think of this market then maybe that will sway them to hold off.