[quote=sdrealtor]Yes it is getting interesting. Pressure has to be up on pricing with these kinds of conditions. In my hood prices gapped down 50 to 75K between nov and Feb as did most of my area. Some nice listings are coming on but well about even the prices from last Summer. They will need to reduce but will be interesting to see what happens. I can see a possibility of the gap down reversing and gapping back up.[/quote]
Exogenous forces pressure prices in one direction or the other, but buyers resist the change, holding on to historical prices. What’s more, the distressed inventory, little as it may be, occasionally deflects the price metrics down.

Part of the stickiness is some buyers’ unwillingness to face the possibility of a short sale or foreclosure. So they put the houses on the market at elevated prices: what they need to get in order to not have to bring cash to closing. Some of these houses stick on the market. In other words, sellers aren’t resisting selling out of greed but out of necessity.

The old listings are all simply overpriced, either relative to their shabby condition or to their flaws.

This should result in prices climbing, but it will be self limiting, as rising prices will shake more fruit from the tree.