A report released this week shows that many current home sellers who purchased their homes in 2007 or later tend to ignore current market conditions when pricing their homes for sale.

These “post-bubble” sellers are overpricing their homes by an average of 14.1 percent.

"Overpricing homes causes them to stagnate on the market and keeps inventory from decreasing – not a desirable outcome for either the sellers or the market as a whole," said Zillow Chief Economist, Dr. Stan Humphries.

According to Zillow, the buyers who purchased homes between 2002 and 2006 when housing prices peaked are defined as bubble buyers. Pre-bubble buyers bought before 2002 and post-bubble buyers became homeowners in 2007 or after.

"Post-bubble buyers seem to believe they escaped the worst of the housing recession, as evidenced by how they price their homes today," said Humphries. Zillow found that overpricing is a common trend.

Sellers who originally purchased their homes before the run-up in home values also overprice their homes, but not by as much. Those who bought before 2002 price their homes about 11.6 percent over market value, and those who bought between 2002 and 2006 price their homes 9.3 percent above market value.

Humphries warns that these home sellers “need to break out the pencil and paper and do serious research into what has happened in their market since they first bought their home, whether it was four years ago or six months ago.”

Zillow's survey revealed 17 percent of post-bubble home sellers are oblivious to current market realities and tenaciously cling to their original purchase price as the “primary factor” in determining their home's current sale price.

This is despite the fact that home values have been falling since 2006, and are now down nearly 30 percent from the market's peak.

By comparison, 4 percent of those who purchased before the bubble and 9 percent of those who purchased during the bubble said the original purchase price would be the primary factor in determining their asking price.

Zillow, the online real estate information marketplace, partnered with Harris Interactive to analyze current home price trends.

The asking price of 1 million for-sale homes was compared with those homes' previous purchase price, then Zillow factored in the change of Zillow's Home Value Index at the ZIP code level to determine that home's current market value.