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A younger sister of mine ran into financial problems (she and her husband lost their jobs), so they put their house up for sale last December (SF Bay Area). I told her it was overpriced at $759K, that market prices were on the decline, and they should price at $719 or lower. She said she actually wanted $779 but gave in to her agents advice.

As her savings dwindled over the next few months I repeatedly advised her to drop the price. She and her husband were stubborn. All offers were far below what they wanted. A couple more months went by, and me and another sister lent them money to help them get by. She then told me to lay off telling her to drop the price. Okay then, no more help from me.

Over the last few months, they finally re-listed at lower prices, several times. They're currently listing at $719K with no offers, and the bank is probably going to foreclose on them. They've tapped out much of the equity, have no money, no more credit, are behind 4 or 5 payments and may soon be homeless. I suspect there are a lot of stubborn (and sad to say, stupid) people in this situation.