Inflated Listing Price

I am amazed at agents that list homes 10-20% above the market just to get the listing. The Fishers, Indiana real estate market has been very hot for the past 10 years. The  population has increased 25% in the past 5 years to 65,000. In the past week three homes in a neighborhood have been listed at 12% above the average sales price for the past 90 days. The trac subdivision had 7 sales with an average of $340,000 of which I sold 2 of them. In six months when these homes are still on the market the homeowners will be mad at all realtors because their home has only three showings and no offers.