Recently a collegue asked me to help her with a CMA for a new listing. She couldn't find active comparables or recent sales with which to work.
I suggested several alternative methods for her to use. I was stunned therefore to see the new listing on the MLS with an amazing list price. Turns out that the owners had purchased the house new within the last several years and have now listed the property much higher! So who didn't get the memo - the agent, owners or both? Here is Fairfield County Connecticut our sales volume is up, inventory is shrinking in certain price ranges BUT prices are not rapidly rising. At best, they have stabilized and have very modest gains.
What is true about this market is that we have buyers. We have buyers looking and hunting for value. Without perceived value they probably won't purchase - they is very little sense of urgency in this market. They also have a range of options with which to research markets and listings that we couldn't dream of 10 years ago. The upshot is all about value in the list price. Here is Greenwich, we seem to have bi-polar listings prices. There is the "dead-on" list price that reflects current value and the "pipe-dream price" - 'cause there's no way it will sell for that!
The well-priced home, all things being equal, will receive great traffic and possibly even go into multiple offers here in Greenwich. The other will have the usual "death by price cut". As an agent, as person with fiscal duties to your client, which side of the pricing divide should you be on?