>I didn't mean irrational in a pejorative sense but in an economic one. When you hold out for more than the market value, won't sell for the market value, that's irrational.

Not necessarily. I've put property up for sale at higher than market price, because I didn't want to accept market and because I didn't need the money. If they need to sell, for whatever reason, then it would be irrational to expect above market price. However, if the sale is not critical, then I think they're quite rational to ask for the price they want. Why settle?

>More so than people are about other things, which was my point. If you're trying to sell a used car for, say, $5000 and nobody is calling about it, you drop the price. If you're holding a garage sale and it's 3:00 Sunday afternoon and everyone has passed on that old set of golf clubs you've tagged for $100, you drop the price. You recognize reality. People seem reluctant to do that when selling their homes. It's like they've had a sale price and a profit locked into their heads from the day they bought it. This "profit" was always hypothetical but they act as though it's real. That's what I mean by irrational.
>
>>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