The number of homes sold this year compared to January & February of 2007 was down 43% and 42% respectively. The supply of homes continues to increase disproportionately to the demand. Each month, only 10% of the homes are selling and 25% of the home sellers are dropping their prices. This is putting downward price pressure on the remaining 75% of the inventory. The homes that do sell in this market are the ones where the sellers were highly motivated and realistic about their prices.   Buyers are few and far between and they are all looking for a great deal- Since buyers control value, sellers need to adjust their prices to meet the buyers’ expectation of value in their price and product category.  Buyers tell you what your house is worth, either by making offers or by ignoring you. You can control their behavior by adjusting yours.

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