Sellers can't face reality of housing market decline


One of the interesting puzzles of the housing boom and bust is that the price of homes has declined significantly, but not as precipitously as the volume of home sales has. At least for now.

Experts say that that's because sellers aren't yet ready to accept that their homes have declined in value -- primary residences are more emotional investments than mutual funds. The laws of supply and demand aren't as cut and dry when it comes to housing and the result is a glut of homes for sale and few buyers willing to take the plunge, betting instead that they'll be able to wait and get in at a better price.