Eventually enough sellers — led by those who have to sell — will decide to cut prices enough so that enough buyers who have been waiting for bargains will decide that bargain prices have arrived. Sales volumes will start to pick up. Price declines will gradually slow and finally vanish. The housing market won't bottom until prices have declined enough to match buyer expectations.
Which is why many in the real-estate industry are rooting for prices to fall. "Sellers are not bringing prices down fast enough," David Lereah, head economist at the National Association of Realtors, told The Wall Street Journal. "They've been very stubborn."
Here is the link to the entire article: (common sense for most of us, but well summarized”)
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