Check back on those properties in 6 months and see how many listings other than Fannie Mae's have sold! Keep in mind also that foreclosed properties have often been trashed by the evicted previous owners and the lender sells them "as is" with no fix up for marketing. Besides, Fannie Mae is a business, and without the emotional involvement in the property that an owner/seller would have, Fannie can be more clear-sighted when choosing a price that will move the property off their books.
Kinda reminds me of a man who called me to list his home back in the '89 crash out here. When I told him my recommended list price he said he couldn't sell at that price because he wouldn't make any money! He had already refinanced over $100K out of that home. He listed higher with another agent and eventually lost the home in foreclosure.
Bottomline, if no sellers were listing and selling at reasonable prices, there would be no sales at all in markets like this one. It is a buyers' market and buyers, not sellers, are the ones who determine value by what they are willing to pay. Think of it like stocks, Joe, prices tend to run further than one would think at both the high and low ends of the trading range. Do you blame the sellers of stock when prices drop below what you would expect? No, it is simply market forces combined with human nature at work.
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