I think that you are right and that a lot of people who tried to sell in ’06 have decided to ride out the downturn… if they can. I know of mulitple houses in my area that are off the market because they couldn’t get their wishing price. Maybe they were just trying to cash in? Or maybe people really believe that prices will start to go up again and are just waiting for the magic bounce before they all pile back onto the market?
Now that subprime is blowing up, it will be interesting to see what happens to the “starter home” markets. I bet we see more decreases in sales volume. Further, I think a lot more houses are going to fall out of escrow because they can’t get the money.
On a slightly different topic, I’ve noticed that there are one or two realtors here in Coronado who have every single one of their listings priced much higher than comparables. WTF? I drove by two houses for sale yesterday on the same street. They were very similiar houses but one was listed 20% higher.
