The way I have always seen free market work is, product doesn't sell = price comes down.
My neighborhood has been littered with for sale signs for about 6 months now.
Nothing is moving.
That's because people don't want to sell for less than what they owe or less than what they think they deserve. Do you think someone is making these people hold their price?
The market will force these people to lower their price if they really want to sell. It may take awhile, but it will happen eventually.