Real Estate agents are not appraisers and therefore have to rely on a Comparative Market Analysis to help price our lisitngs. We look at homes in comparable areas that have sold and work up an estimation based on that. We are at the will of our sellers who in the end determine the listing price. We can advise them and help them with the CMA and most homes are listed in the proper range. A home is only worth what a buyer is willing to pay for it.
I can honestly say that although we have homes sale for below the listing price, I have actually seen some sell for more than the list price. Full offers some in all the time.
If there is a house you like and you feel it is overpriced, make an offer on the price you think it is worth. I am not saying you will get that price but you never know until you try. Sellers around his area have many differnet situations you never know if they got transfered and they have to sell and come out of pocket after living here a couple years with no equity or if the house was a family members that passed away and is paid in full waiting for the best offer to come in. Maybe something in between.
The econmy is tough everywhere, housing prices cannot rebound unless a buying is willing to pay more for it.