Chasing Down the market!

It is a known fact in team sport games like soccer or basketball that passing is much faster way to move the ball than dribbling.
The analogy to RE, is that if you chase down the market, you will never catch it. The fact is that you will get buried under the house or literally get foreclosed in today's market.
Here is a nice example of this:

5716 WILBUR AVENUE, Tarzana, CA 91356


Sales History:
Oct 17, 2000 $230,000
Sep 02, 2005 $699,000

Asking price history:
Feb 20, 2007 $749,950
Apr 22, 2007 $650,000
Jun 05, 2007 $595,000
Jul 21, 2007 $555,000
Aug 12, 2007 $545,000
Aug 21, 2007 $490,000
Nov 30, 2007 $489,000
Mar 26, 2008 $475,000
Mar 27, 2008 $465,000
Jun 10, 2008 $435,000
Aug 19, 2008 $405,000
off market
Relisted as new listing:
Sep 23, 2008 $395,000

This seller is trying to sell for the last year and a half...
He slashed his asking price from $750,000 down to $400,000. Almost 50% and still can sell.
Had he been not so greedy but more reasonable....Had he just wanted to sell and not chase down the market...
He could have sold it long ago...It is safe to assume he could have sold it for $600,000 in Feb-march 2007. (when loans were still given to anybody that can sign x and say his name...)