With the turn of the market from a robust sellers market to a buyers market and with more inventory on the market, sellers expectations were not realistic.  Also agents to get the listing will put together a CMA selecting only the homes that sold at higher prices and not the true average.

Sellers that had to sell (job relocation, deliquent payments, facing foreclosure, etc.) would take lower offers.  This actually brought the median price down slightly a few months ago.  It now appears to be going up slightly.

Thus we are in a market that is correcting itself.  Many of the listing were overpriced and adjustments have to be made to bring them down to true market prices.