This weekend, I was in discussion about a very beautiful home that is for sale for more than $625,000. The sellers have that much in it, have owned it since 2006, and now need to sell the home and move on. It is very beautiful. Many very high quality finishes and details. Architecturally beautiful. Nice location. Lots of windows. Great access to outside.

 

But in today's market, this home probably is worth considerably less than the current asking price. The market for homes above $600,000 is very bad for sellers (conversely, very good for buyers). Homes in this price range typically sell for $100,000 less than what they were worth 3 years ago. So sellers either have to accept a very low price, or have their home on the market for a very long time, or occassionally find the perfect buyer who loves the home and will pay enough to get it.

 

Many sellers can't afford to take considerably less than what they paid for the home. Some simply have to move on, and take a huge hit on the sale price. Some maintain the home even though they now live somewhere else. Some resign themselves to staying put for now and hope that the market will recover next year.