As bargain sales of distressed homes soar, financially healthy sellers may need to slash prices to compete. Call them “the haves” and the “don’t haves.” As in: Those who have to sell, and those who don’t have to.The haves are the distressed sales. These include those in foreclosure, and those in pre-foreclosure “short sales.” Such sales are now booming – at bargain prices.On the other hand, those who don’t have to sell are often hanging on to 2006 prices. And they are hanging on to their homes. Prices aren’t dropping. And homes aren’t selling.This could be ominous. It suggests – though it does not prove – that another shoe could be about to drop in real estate, as those who don’t have to sell realize they need to compete more aggressively with those who do.
By Brett Arends, April 24, 2009 WSJ

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