No, I am not happy with my options! We desperately need more space for a growing family in Howard County, and the homes that should be in our price range, are priced at ridiculous prices. People need to wake up and realize that it is not 2006 anymore! I am seeing homes that haven't been updated in ten years that are $400,000 overpriced. While I understand that the sellers NEED to sell at these prices because they have taken second mortgages, etc., the reality is that most of the houses on the market aren't really on the market at all. We don't even bother making offers anymore because the sellers just won't listen and it is a waste of our time.

Hey Jamie, can you please include your article in full through your rss feed so that we can continue reading your articles for those of us without a sun subscription.

Hi, Anonymous -- the rss feed setup for Sun blogs isn't handled by the bloggers themselves. But you know, if you're finding yourself frustrated about the inability to read Sun content that interests you, that's a sign that you ought to be getting a subscription. It costs less than seeing one movie a month by yourself, sans food.

There are a few reasons for this:
1. Traditional sales are tough because homeowners can't trade up because they're underwater on their current mortgage or have seen their equity evaporate over the past 3-4 yrs.
2. Banks are holding off on foreclosures and releasing foreclosed homes onto the market because they don't have to recognize the loss (loaning a large amt of money, the default, and then selling for a smaller amount of money) until the sale.
3. Even people who could "trade up" are reluctant to take on a bigger mortgage or put more money into a new house when home values still have room to fall.
4. A lot of older people were depending on their house sale to retire. When you know your house has "lost" 50k, 100k, or even more in value, it's a hard pill to swallow to sell that asset. Psychologically, it's just hard, since it's probably the last sale/purchase they'll make.
5. The job market is tough for homeowners--so why sell to buy something bigger or more expensive? Less raises, less promotions, lots of people know family and friends who have been laid off. Why buy now? Job market needs to stabilize and show some salary growth.

"A lot of older people were depending on their house sale to retire. When you know your house has "lost" 50k, 100k, or even more in value, it's a hard pill to swallow to sell that asset. Psychologically, it's just hard, since it's probably the last sale/purchase they'll make."

My parents are in the boat above. I wonder if a lot of older people had grander plans for retirement and are kind of rethinking the plans since housing values have decreased?