' Overall home sales have fallen a remarkable 33 percent since the summer of 2005
Home prices, on the other hand, continued to rise until 2006 and are now only 5 to 10 percent below where they were in mid-2005
In most other areas of the economy, this combination of plummeting sales and stable prices would not happen. When demand for airline tickets drop, the airlines cut their prices until they have sold their seats. When stocks become less appealing, share prices fall
Real estate, though, is different. For both economic and psychological reasons, there is no asset more conducive to hopeful overvaluation '
From an article in today's New York Times by DAVID LEONHARDT
Be It Ever So Illogical: Homeowners Who Won’t Cut the Price
There's not much in this article that's revolutionary, or that we haven't heard before, but David Leonhardt says it all very well, and at times like this it bears repeating. And while I like the comparison with stock prices - as I've used it a number of times, sometimes even successfully, with stubborn sellers - the band-aid analogy really cuts through the clutter.
' In many ways, it would be better if the housing correction would happen more swiftly and sharply. The pain might be worse, but it would be over quickly. We seem to understand this principle when we’re removing a bandage. Why, then, is it so much harder with housing?'
to search for and learn more about Tucson Foothills Homes