The Realestate Market

This article investigates the current market for homes in the greater Cleveland area. In the current state of this market there is a surplus in the number of homes available, while the demand for homes has remained stable. Although sellers are faced with a market that appears to inhibit sales, there has been an increase in the number of homes sold in the area. This article also states that most sellers are receiving about 96% of their listed price. Are the spreading and dimishing-returns effects applicable in this case, and why?