The good real estate agents will weather the storm and those who came late to the party will fail, just like the late speculators in every overheated market. I wouldn't consider people to be irrational about their homes. For most people their home is the largest investment in their life. If there isn't a pressing need to move then they can set the price however they wish.

>People are really irrational about their homes. One of the things we are seeing now is sellers who are unwilling to budge off the price they think they should get. This price may have been in their head for some time and probably relates to the price they paid, i.e. "I should make a 30% profit." And they stick to that number even though prices nationwide are down about 20%. It must drive realtors crazy. (Wait, I'm sorry -- real-a-tors <g>).
>
>>I sort of feel bad for people who bought in the past few years and are getting burned by declining values but....not really.
>>
>>I mean, why should short term fluctuations in home values bother you if you've bought a home as a residence? Isn't it conventional wisdom that you buy a home planning for the next ten years?
>>
>>IMHO, buncha cry-babies.
>>
>>>http://www.iht.com/articles/2008/04/13/business/housing.php?page=1