Well, although markets are cooling in many areas, prices are not substantially dropping. In fact, some markets are still appreciating in value, albeit at a far slower pace than before. So, how the heck is this happening? Pehaps we can blame agents (who, of course, lose money on their paycheck if the price of the property drops)?
Unfortunately, there's no one to blame but buyers.
How can that be? Well, a seller can set a price at a desired amount, but that price doesn't mean a thing unless someone is willing to pay it.
So, when will prices drop? When consumers (as a group) begin to resist paying the current prices for real estate.
Such a large scale change in buyer behavior normally requires a bit of "push", whether that is from a softening economy,increasing unemployment, or a scare of some kind. While analysts have been trying to scare the public for some time, concerning the woes of the housing market, the tactic clearly hasn't worked.
It would seem that only time will tell.
Michael