As the inventory and days on market in the Twin Cities increase, smart agents and sellers are reassessing their price every 15-30 days. I’ve seen in two different townhome developments that new listings are being priced at or below the others currently for sale. This is smart pricing on the part of the new listing but has a negative effect on the other homes listed for sale.
For sellers that listed their home previously, they are now forced to reevaluate their pricing in the face of the new competition. If they do not adjust their price accordingly, any potential buyer is likely negotiate an offer with the better-priced seller.
Moral of the story: stay informed on your competition.