NPR logo

Many Homeowners Insist on Inflated Prices

  • Download
  • <iframe src="https://www.npr.org/player/embed/89225406/89225388" width="100%" height="290" frameborder="0" scrolling="no" title="NPR embedded audio player">
  • Transcript
Many Homeowners Insist on Inflated Prices

Economy

Many Homeowners Insist on Inflated Prices

Many Homeowners Insist on Inflated Prices

  • Download
  • <iframe src="https://www.npr.org/player/embed/89225406/89225388" width="100%" height="290" frameborder="0" scrolling="no" title="NPR embedded audio player">
  • Transcript

The usual economic truism — as demand goes down, the prices go down— doesn't seem to apply in the current troubled housing market. Many homeowners prefer not to sell their home than to take a penny less than their inflated asking price.

Hersh Shefrin, professor of behavioral finance at Santa Clara University, breaks down the economic conundrum for Andrea Seabrook.