There are two gas stations at the same intersection. One is charging $2.83 per gallon for regular unleaded (am I dating myself by saying that sounds like an oxymoron?) The other is charging $5 per gallon. Out of curiosity, I stop at the $5 gas station and ask why the price is so high. "Because," the owner said, "that's the price I need to get to hit the right profit level."

As you probably surmised, the second gas station doesn't exist. But the owner's story does, every time you talk to a seller who has priced their home above the market.

I recently adopted a listing from another agent in my office. The sellers can't figure out why their home has been on the market for five-plus months but it's not hard to figure out. Their sales price was too high back in March, it was too high when I took over in July and it remains too high today. They've dropped $30K off their original list price, but if they had put today's list price on the house in March it most likely would have been sold today.

Unfortunately for many sellers, buyers don't care what a seller "needs" to make a sale happen. And the market is equally unforgiving. In an environment where there is nearly an 8-month supply of homes, only the best priced homes will sell. And so the decision needs to be made up front by the seller ... if the market will not get them the price they need, should they really sell now or wait for the supply to fall?

For more information about the Phoenix Arizona Real Estate market, visit my comprehensive website at http://www.DaltonsAzHomes.com!