There has been a wave of discussion over the ‘bubble’ in US residential real estate. Prices have not yet fallen substantially - with only a few canary markets showing a decline - but inventory is rising fast and the number of transactions are down (but keep in mind off record highs in the last few years).

What does that mean? Buyers are not biting at these price levels, and sellers are currently unwilling to accept a lower price causing the housing stalemate we now have.

For a great analysis, see Mike’s post over at Altos Research. He raises a very interesting point, in that condos, which watchers of real estate obsessed over condo sales last year as they were said to be the first to fall in a down market, actually rose year over year. That suggests some uneveness in the theory of a popping of the housing bubble.

Whatever the case, as a seller, you have to work smarter and harder in these conditions.