I fall in the category of those who are waiting to buy a home for me to live in (I do own out of state rental properties) because I think the price levels are insane and cannot be substainable. Just searching through ziprealty’s listings this morning shows some properties have dropped over $80k in a 3 month period and yet there are still no buyers. I have a feeling a lot of homeowners are reducing their prices too slowly or not reducing the prices and simply just relisting on the MLS will get burned within the next year.

I recall a few days ago coming to a listing that had a price reduction of 10K every week for the past 2 months. I kid you not. That is 80k drop in 2 months. Now I bet if they did this all at once instead of trying to get as much as they want (not as much as they can), the home would have been sold already. I’m guessing this homeowner was some flipper who bought the home as an investment and is trying to minimze how much he has lost.

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