[dk88]

The problem is also the lending.

Banks have raised the bar so high that no one except cash buyers can qualify for the credit requirements.

A realtor friend said she couldn’t complete a sale for a couple with something like 30% down and a high 700s credit score.

[GlockThe Vote]

The prices are still grossly too high, as are the property taxes, insurance, etc.

[VegasCowboy]

A realtor friend said she couldn’t complete a sale for a couple with something like 30% down and a high 700s credit score.

That's hard to believe. What is probably happening is that the agreed upon price was deemed to be above market value based upon the appraisal. Most banks are dying to lend to qualified borrowers (check out bank balance sheets - lots of cash earning virtually no yield). A problem you're seeing now is appraisers being overly conservative after they were all made to look fools during the bubble years.