But the problem in LJ, Del Mar, etc, is that most folks haven’t figured out what these sellers evidently had, i.e., that prices are going down. I’ve seen numerous listings where owners have set a price *above* what they bought for in 2008, 2007, etc–what convinces these people that they should get more than they paid?
My only conclusion is that people are either (a) trying to squeeze the last air out of the bubble while they can in this mini-rally, or (b) they owe so much and are so far underwater, they’re seeking some seller not to buy their house but to eliminate their debt.
