California couple sees stalemate when selling their home

While some are encouraged by recent housing news, such as Monday's report that the pending sales of previously owned homes are up again, my parents' experience shows otherwise.

My parents, who live in the Oakland, Calif., hills, are stuck. They're looking to buy, but they can't until their home is sold.

They live in a gorgeous four-bedroom, two-bath house. It is a traditional three-story home with beautiful views of the bay and San Francisco. The two-car garage opens into the downstairs, which has served many functions in its day: a playroom for kids; an artist workshop; and a storage room.

Much of the house is remodeled, including the kitchen, the living and dining rooms and a bathroom. It also has cost about $10,000 to update for the sale. The home has never looked better.

But it won't sell.

I may be biased because this is my childhood home. I think it would have been picked up in a snap if the housing market had improved sooner.

It's listed at a low $950,000, but there has been little interest. There have been a small number of curious would-be buyers, but they quickly back out because their own homes are unable to sell.

On the buying side, my parents have seen hardly any homes listed in their budget (below $1 million) in Berkeley, Calif. Houses do crop up occasionally, but it seems to be happening less frequently now.

This is the problem we face with our current housing market. My parents are looking to buy a new home, but they cannot buy one until theirs is sold. Others are looking to buy my parents' home, but they can't buy it until they unload theirs. The market is at a stalemate.

At this point, my parents and their agent have lost a lot of hope. They are considering lowering the price, but they fear to do so because it will inhibit their ability to purchase a new home elsewhere.

They will keep the home ready until the end of their contract in June. They will then unhappily resign to keep it on the market.