The Arizona Republic has this update from the Phoenix area. "Real estate agents need to be 'brutally honest' with sellers today, as there is about a six-month supply of unsold homes, agents were told at a panel discussion. Many clients are still holding out for last year's prices and not trusting their agents, but agents were advised to teach sellers how competitive the market is and not just tell them what they want to hear."

"'You are not going to sell a property at market value. You are not going to sell it for its appraised value,' said Paul Pastore of Re/Max in Chandler. 'You are only going to sell it for what someone is willing to pay.'"

"There is an 18-month to two-year supply of unsold homes in Surprise and 2 1/2- to three-year supply in the Johnson Ranch area near Queen Creek, said Russell Shaw in north Phoenix."

"The biggest mystery for agents today is how to price a home. You can't count on city or town medians or appraisals but have to look at what comparable homes in the neighborhood are selling for, they said. It is common for prices to be reduced several times if a house isn't selling. Pastore said he even quit putting prices on fliers because they are so flexible."

"Although appraisals serve as a general guideline for what houses can be priced, they aren't always hitting the mark. Agents talked of houses selling for $50,000, $80,000 or other amounts below appraised values. One agent said she has a home priced $100,000 below appraisal that isn't selling."

"(Realtor) Caryn Shannon in Gilbert said, 'I hope people in the next month who don't have to sell will drop out of the marathon.'"

"Sometimes clients don't believe it when agents advise them to lower prices because they are remembering the run-up over the past two years. Bruce Fraser in Chandler remembers an Ahwatukee Foothills man who insisted that he be able to set the price and commission and wanted a price in the $500,000s. Fraser recommended a lower price. 'The man shook my hand and said, 'OK, it's time for you to leave.'"

"Teresa Anderson, a Mesa resident, said, 'If I pick up that someone is draining my energy and that of my team, I walk away from it.'"

"Bill Ryan said agents have to be honest. 'Mr. and Mrs. Seller, I would rather turn you down than let you down.' He said sellers need to keep things in perspective. He advised one woman who had reduced her price to lower it more. She was reluctant until he pointed out that even with the lower price, her investment had earned about 40 percent in 36 months. She accepted the lower price."