I for one dont think the tumble is over. I expect another year or more of decline, I look at the rental market and until it becomes better to buy than rent, rental prices will continue to rise(I have seen a marked increase) and sales prices decline. When the market took off it was cheaper to buy than rent due to the record low rates. Prices escalated far greater than people's income. In addition the costs of oil were a little more stable. Now with record heating, utility and food costs as well as creeping interest rates I fear real estate will continue to drop.
As to your observation re the bankwhen they are selling, perhaps they are following the same path as other sellers who just dont get it. Funny that at the same time I am seeing appraisers really coming in with low numbers reflecting not just current sales but expectations of further decline. Still, as Jeanne said, properly priced homes will sell( I put 3 listings under contract in the past few weeks).
Also, on just regular transactions, I'm seeing homes sell for between 1-5% of their list, when the price is right, be that right out of the gate or after several price reductions. Just happened with one of my own listings - sellers listened and priced at about $690K, and we went under contract quickly at 1% below that. We've got many examples in our office of homes once they hit their proper strike price, moving quickly in that 1-5% margin.
I think we are there or very, very near the bottom. Sharing our observations and experiences is helpful as we all grapple with getting our arms around this market.
Thanks for posting this question. I look forward to the dialogue!