You’re definitely a trendsetter, Rich. Your writings predate those of Talbott, I think. He just happened to have the time to write a book. People’s lack of understanding of pricing homes is a big contributor.
As far as the stickiness comment from Chris, we can see that homeowners are reluctant to lower their prices to a level to meet current demand. It’s the homeowner ego that prevents his good decision making. He holds the belief that “I can’t sell my house for less than my neighbor”, and he holds on to get his paper profit, thinking that paper profits are real. Thus, it is basically the homeowner’s lack of understanding of markets, and supply/demand that make him list his house too high, and hold on to that high price, and turn down reasonable offers, and this causes the delay of prices dropping.
