And they will hold on to unrealistically high expectations on the value of their properties.

I was talking to a realtor I bumped into last month, he said that houses are staying on the market longer because sellers don't want to accept the offers they are getting. In some cases people are upside down or close to it.

It has been a long time since people have had to deal with the idea that their house will do anything other than increase in value. He said he thought up to a 50% "adjustment" in home prices is coming.