[Moneyguy1]

Associated Press (excerpts)

"Overpriced homes are clogging inventory in the metropolitan Phoenix housing market as many sellers are holding out for the top dollar that houses fetched last year. Market professionels say many owners continue to believe that the neighbor who sold for top dollar last year set the market price, not the other neighbor who cut thousands from the listing price before selling last week."

"A year ago, metro Phoenix's housing market had about 9,400 homes on the Arizona Regional Multiple Listing system in May. Now the figure exceeds 43,000. Houses sold in an average of 29.6 days in April 2005, compared with 57.5 days in April of this year."

"Some sellers are beginning to drop their prices. But others must stick to their prices even if they are too high because they tapped into their home equity with credit lines, assuming that last year's big gains in appreciation would continue."

Agents say investors, who have mostly fled from the metro Phoenix market, are dipassionate and realistic about setting prices and see the property for its potential to deliver money".

Just some parts of the article, like the visible part of an iceberg.