Will Your House Go to the Prom?

We continue to see fewer sales (441 in April) and more listings (3,218), and in my opinion, more buyers kind of standing on the sidelines. Whatever happened to "Put me in, coach!"?
I suspect that people think the market will drop (or drop more, depending upon their Gloom Quotient) and are hesitant to buy.
The way I read the stats from our local MLS is that the market hasn't trended down since January of '06 when the average sale price was $196,059. Because in January of '07 the average price was $194,251 and as recently as March of '08 it was $197,110. There have been monthly ups and downs since then, but that picture is mostly flat. So why not buy now and be reaping the benefits of building equity and taking advantage of the tax benefits of owning? Beats me. Then when and if the market does go up, you are already in place to take advantage of every bit of appreciation.
Just a thought.
So how does one sell a house in this market? It is kind of like watching a house version of The Bachelor. Fifty houses competing for one guy. Or going to the prom. There are 441 guys going to the prom, and 3,218 girls who have bought their prom dresses. For every house that gets asked, six don't. And there are always more houses in those dang prom dresses coming on the market!
So how do you compete? You've got to be the best value - best looking, coziest, most perfect, well, you get the idea, on the block.
This may take spending some money. New carpet, new paint, trimmed and beautified exterior. (It really is like The Bachelor, isn't it?) And this isn't money that you get to tack onto the price and get back; this is money you spend just to let you compete to be that first choice out of seven. It's like money spent on prom dresses (think paint), make up (think more paint) getting your hair done (think new roof) and losing weight (think maximizing curb appeal).
Do you hold out for the best looking date? Nope.
Do you expect top dollar? I don't think so.
Might you have to settle for less than you hoped? (Gee, isn't that what happened at your real prom? Funny how life repeats itself.) Yeah, probably.
Like The Bachelor, you get a single 10 minute date to prove you are the one he should pick.
If you don't make the right impression? You don't get to go to the dance, at least, not with him.
You get to sit home. And watch The Bachelor.