I am reading and hearing some sensationalist headlines around the US talking about large price drops but upon closer evaluation lots of these drops are on prices that were extremely aspirational, factoring in escalation of 5, 10, 15% and more on recent somewhat comparable sales. That level of escalation is never sustainable over the long term.

A selling price and an asking price are two different things. In some markets we often hear of homes selling for lots over the asking price. In other areas we see closing prices notably below the asking price. Drawing any form of intelligent insights of valuation based on an asking price is folly at best. Signed contract data is just that: an indicator of what is selling and what the asking price was. Most times it does not identify the contract price, or any of the terms of the deal that may impact valuation too.

When an agent places a very aspirational price on a listing, well above what the market would suggest, it is often at the behest of an over-ambitious seller. Their argument is usually "it takes just one buyer..." when we know the best scenario is when two or more buyers feel compelled to bid.

Private Exclusives have the capacity to spare wide public embarrassment, or simply eliminate the worst aspect of a price reduction.....usually by the time a seller acknowledges a price cut is necessary, the listing has accrued (un-necessary) days on the market. The pace of any market dictates lots too: some properties simply are never realistically sold within a few weeks of marketing. Sometimes that active set of buyers passing on a property can be followed by a new set entering the market who end up buying it. Some things take lots more time.

Context matters. A professional agent has the capacity to provide context to their clientele about what a "large price cut" truly means. Often it is not a reflection of a downward market, but simply one that is normalizing and instilling a sense of reality.