Homes are selling for sure, as long as they are priced fairly. Some sellers seem to be trying to take advantage of the low inventory and overpricing homes. When appraisals come in low they are hoping the buyers will come out of pocket for the difference. I always advise my clients not to start life in their new home under water! Its still a strange market with a combination of about 12% foreclosures, 29% short sales and very low inventory.