A STREET IN MY NEIGHBORHOOD HAS HAD FOUR HOUSES FOR SALE for a long time. Last week they all sold. Hardly evidence of a trend by itself, but there is this report: “Sales of existing homes in the U.S. unexpectedly rose in February for the first time in seven months, easing concern credit restrictions and falling prices would hurt demand.” Most of the houses in my neighborhood dropped their price. My sense overall is that homeowners are much too slow to drop their prices in a bad market — people can accept that a stock might be worth less than last year, or worth less than when you bought it, but they seem to have a hard time mustering the same acceptance where a house is concerned. But drop the price, and it’s more likely to sell. And that’s what people will have to do, I think. Perhaps they’re catching on.

UPDATE: Reader Scott Claunch emails: “want to concur with what you’ve posted about appropriate pricing to sell a home in the current market. My wife and I recently sold our home in Minneapolis, for our asking price, in two days. Besides it being a great home it was staged meticulously, very clean, fresh paint, and – most importantly – priced for the existing market, not the market in 2006. I realize this is merely anecdotal, but it supports your larger theme. Thanks for a timely post!” Yes, I see houses that are three years old priced as if they should have appreciated 30% since they were built. That’s ridiculous, and not surprisingly they’re not selling.