But Something Is Definitely Different About Real Estate

Matrix » [Shiller] But Something Is Definitely Different About Real Estate quotes professor Robert Shiller about the irrational behavior of homeowners who are allowing their home prices to fall gradually over time, rather than selling early and at higher prices.

"Why would a sensible person watch the value of his home fall for years, only to sell for a big loss?" Did he just notice that housing isn't an orderly and logical market? If a home were as liquid an investment as GM stock, then selling quick when things look bad would be a probable course of action. But, moving, sale costs and a myriad of personal factors are part of this decision. My kids won't have to change schools if I dump GM. And, my wife won't make me move furniture.