Mine is clearly a minority opinion here, but my answer would be no: they are (in general) not looking for traditional epic fantasy, at least not from new authors. I'm assuming here that you're talking about swords-and-sorcery or Tolkien-esque fantasy, the type that is set in a Medieval-style world and features dragons, elves, and the like, and not things like Harry Potter or urban fantasy.
There's plenty of urban fantasy and other subgenres on the market, of course; fantasy as a whole is alive and thriving. But I literally cannot remember a single traditional fantasy from a new author that I've seen in the last five years. I'm talking the type of stuff that Terry Goodkind and Robert Jordan wrote. The only fantasies of this type still being published are written by people who've been writing and publishing it successfully for a long time.
Probably someone will come up with examples to disprove me. But it seems to me that unless you already have a track record, it would be very difficult to break into the market with an epic fantasy. That said, the market is changing all the time, so maybe it will come back. If you've written a spectacular, original epic fantasy that completely reinvents the genre, someone will probably bite.