I was out of the office much of the day today showing houses and it seems to me that there are still a lot of sellers who don’t understand what has happened to prices. They really should get out with their agent and look at houses priced below theirs. If the agent is careful in her selection, her seller will see better houses than his, for far less money, and even those aren’t selling.
I can’t help you with market conditions but I guarantee you that if you’re priced at $6.9 million and there is a better house – better design, better location, better grounds, asking $5.4, that owner’s will sell long before yours does.
The most egregious example of this is a new spec house that came on for $14 million when those agents who saw it thought $7.5 was its top price. Two years later, the builder still has it listed for $12 million which may be testimony to his deep pockets but not to his common sense. What I thought might be worth $7.5 in 2006 is probably worth less than $5 now. That’s got to hurt, if I’m right.