Denial in action

The Associated Press came out with an article today that said existing home sales have now hit a four-year low.

Here's an interesting quote from the story:
“The only way we are going to chip away at this Mount Everest-sized pile of inventory is by price cuts and so far, sellers haven’t been aggressive enough,” said Mike Larson, a real estate analyst at Weiss Research. “Don’t look for a lasting bottom in the housing market anytime soon.”

No way! Do you think some sellers are still delusional enough to believe they can profit from buying at the peak of the bubble and then turning around and trying and sell their house to some fool who hasn't been following the recent real estate dismemberment?

Consider the following two examples...

130 Lohrum Lane, Anaheim Hills, Calif., 92807
Current price: $594,000
Redfin sales history:

Date	Price	Appreciation
04/17/2007	$560,230	-3.6%/yr
06/06/2005	$600,000	15.5%/yr
03/03/1998	$211,000	0.4%/yr
09/19/1991	$206,000	6.0%/yr
04/14/1988	$168,500	--

Size: 4 beds, 2 baths, 1,505 sq ft
MLS: I07065156 (52 days on Redfin)
Price history for current listing: Price Reduced: 05/08/07 -- $672,000 to $638,900
Price Reduced: 06/22/07 -- $638,900 to $594,000
From listing: Anaheim hills! Reduced! Fantasic single story home in quiet cul-de-sac, covered patio. Open floor plan with a good sized kitchen/family room area. Freeway close! Above ground spa is shaded and being sold without warranty. Home is sold ""as is"". Buyer to verify all information herein for themselves. Mls is updated daily, if mls says available, it is.

This owner paid $560,230 in April and promptly re-listed it in early May for $111,770 more. Surprisingly, no takers yet and it's already seen two price reductions for a total of $78,000. How much lower will this place go before someone else takes a a turn?

1445 Shamrock Lane, Costa Mesa, Calif., 92626
Current price: $660,000
Sales history: 04/24/2007 : $625,000
Size: 3 bed, 1.75 bath, 1,375 sq ft
MLS: U6602303 (328 days on Redfin)
From listing: Secluded street w/ little traffic-quiet neighborhood. Hardwood floor w/ raised foundation, k lath plaster walls, added rustic den overlooking beautiful lawn area, copper plumbing and new roof. Award winning neighborhood by Costa Mesa Chamber of Commerence in 2006.

Don't expect to make money (in actuality, this is a loss after 6 percent selling costs) off a place you've only owned for about two months, when people who have owned properties for two years are still waiting to see a gain.