I heard a great discussion about the state of the market recently, and wanted to post this here for all to see. This is especially important if you are selling, or thinking of selling your home. The point of said discussion was very simple; About 70% of homes currently for sale are overpriced, and the remaining  30% are priced correctly, and therefore fetch multiple offers. How do we know this? In the month of October alone, for the areas of West Hollywood. Miracle Mile-Beverly Center, Hollywood Hills , Hancock Park & Beverly Hills, 48% of listings expired , which means they are unsold. This doesn’t even count the hundreds of listings that were withdrawn from the market. So, chances are, the the 70/30 ratio probably isn’t that far off the mark. I realize that there is a debate on whether or not the current wave of Foreclosures and Short Sales will make it’s way over to the West Side or not. If it does happen, it can only increase inventory, which underscores the importance of a homeowner to sell at a price which reflects current market conditions. People who are listing homes at unreasonable prices are just compounding the problem at this point. We should all remember when gasoline was rationed in the 70’s and adopt a similar mindset to the current oversupply of homes for sale; if you really need to sell, have a realistic outlook about the value of your home. Attempting to justify a high selling price in this market just because you were offered a similar amount of money back in 2005 is like arguing with your Stock Broker that your stock used to be worth xx dollars/share. Markets are not static. They fluctuate on a daily basis.