Newly listed homes are priced an average of 10% above the market price according to research from Zillow.com.  Sellers who bought their homes after the bubble in 2007 are the most likely to over price their homes by an average of almost 20%.

In a separate survey, Zillow found that 17% of those who purchased post bubble used their purchase price as the primary factor in pricing their home for sale.  Only 9% who bought during the run-up and 4% who bought prior to that use their purchase price as the primary factor in pricing their home for sale.

Sellers who bought post-bubble seem to think that since their home purchase occurred after the peak of the market, and thus home values were already significantly discounted relative to the peak, the seller escaped the worst of the bubble.  The problem is that “The Bubble” didn’t pop so much as steadily deflate for the better part of 5 years now, and current home values now represent what they were worth in 2003.  Said differently, assuming your market followed the national trend, unless you bought your house before 2003, you should be selling it at a loss now.  The closer to 2006-2007 you bought, the bigger that loss should be.  – Zillow.com

People are funny.  Sellers that purchased their homes since 2009 are initially pricing their homes 10% higher than when they purchased it one or two years ago.  They are doing this in spite of the fact that, on average, home prices have declined 10% in that time.  I understand that they would like to recover the costs of selling and I suppose everyone tends to think they did far better than average.