stickiness cannot be underestimated. Remember people will do what they can until they are forced to sell. They will stretch like crazy, sell stuff, beg, borrow to save their home. Most in the market are pre 2003 home buyers with good equity. These are not going to lower their prices significantly at all. You can see them reducing prices on their listings 5k at a time, yeah right, give me a break! These people love acting like their gains are a birthright.
Another culprit is ZIllow..they have such gross overestimations that it is not even funny. My Aunt’s condo in Las Vegas had a very recent comp for the price she paid for the place in 2003, yet per Zillow it’s 20% over that. Zillow seems to be ignoring comps and coming up with their own ridiculous valuations and of course some people are believing it. We all know that the Vegas market is tanking, yet the ZEstimate for this place keeps going up..up..up each month. Zillow is worthless!
