Hiring a talented, accredited home stager can transform the appearance of a blah, lived-in space into a showcase space that highligts all of its best features and minimizes its faults. I have found that stagged homes generally sell faster and have a high ROI.
I think using a stager makes sense in a market that's even more competitive than usual. I think it can help a potential buyer see it as a home and not just another house.
I've heard that using a home stager can add 6-20 percent to the resale price of a home. I've never used a home stager before but with those stats I'd consider using one in the future.
My feeling is that it differs greatly depending on the house and the owners. When in doubt stage it out.