ARE HOUSING PRICES IN A FREE FALL?

No; in fact, it appears that the LISTING prices can defy gravity and market forces! This remarkable feat of levitation is almost certainly a major contributor to the build up in housing inventory over the last year. While one would expect that prices would have come down as the market slowed, some people are still pricing as if it's 2005-2006 all over again. It's hard to fault them but Sellers are still holding out for the best price available. That is human nature. The big discussion is whether that's smart, stubborn, simply unwise.

Despite all the pundits' claims to the contrary, it's not a full-out Buyer's Market. Sellers have not capitulated to buyers (the true definition of a "Buyer's Market") and accepted their pricing valuations. On the other hand, because they are stubbornly holding out for their price, Sellers are piling up long Days on Market measures. So one has to ask, is this rational behavior. Are Sellers making good BUSINESS decisions?

Yesterday (Sun 9/23/07) the NEW YORK TIMES ran a great article on this very topic, titled, "A Reality Check for Home Sellers". Click here for the link. I absolutely encourage everyone to visit this link. It sheds some light, in some harsh language if you're a seller, on the plight of sellers in the market.

DS