The usual economic truism ”” as demand goes down, the prices go down”” doesn’t seem to apply in the current troubled housing market. Many homeowners prefer not to sell their home than to take a penny less than their inflated asking price.
Hersh Shefrin, professor of behavioral finance at Santa Clara University, breaks down the economic conundrum for Andrea Seabrook.
A very good piece on the psychology of selling. It all comes down he says to one word, ego. I would say sin. People don’t want to sell at a loss because the loss will hand them defeat of which they are afraid. Listen to it all.