A Coldwell Banker report showed that more than 75% of its real estate agents surveyed said most sellers have unrealistic initial listing prices for their homes:

Despite dismal housing headlines and reports showing falling prices nationwide, owners in some once-hot areas still believe their home is gaining value or at least holding its own. And by hanging onto too-high expectations, sellers are unwittingly keeping the market from finding a bottom.

It seems this is another example of loss aversion at play: the irrational refusal to acknowledge a loss, even when all the evidence shows otherwise.

In this case, however, it might have two interesting consequences: from one side it is preventing the market from finding its bottom; on the other hand, it might be guaranteeing a soft landing for the housing market.