Market update 5/13/06

The market seems dead! Houses are just not selling, but on the other hand, price reductions are not widespread either. The spring market seems to have evaporated quickly. In my part of Bergen County, inventory has increased about 30% y/o/y. Some people still price their houses at ludicrous amounts, looking for the windfall profits which they may have been able to get about 6-9 months ago. However, I have also noticed that the "smarter" realtors list houses at lower prices. Many people who were looking to hit home runs have just pulled their houses off the market after some brief trolling. With rates rising and the dollar falling, can a "market event" be far behind?