Bearishgirl, I actually prefer the Investopedia definition. Sellers who are postponing the sale of their homes are homes being withheld from the market, and are therefore lurking in the shadows. It doesn’t matter whether they have a choice of not. That has nothing to do with it. Lenders have a choice with REOs and they choose to withhold properties.

With regard to buyers not having it both ways, as Brian points out, it cuts both ways. Sellers can’t expect homes to hold values in a declining market. There are those who wish to punish the market for it’s excesses, but equally some segments (higher end/coastal) have remained comparatively immune.

The battle line is still drawn between the minority group “we-did-everything-right”, and Humpty Dumpty who’s been propped up on top of his poorly resurrected wall.