1. this property was sold as a short sale (the previous owner sold for less than they owned and required the lender's approval)
2. the current owner likely made some improvements, the short sale was sold "as-is". It's impossible to tell by the pictures how much was actually done and invested. However, it doesn't look like an extensive rehab to me.
3. the owner is taking advantage of the market and increasing property prices, the average sold price in the zip-code for the last 365 days is in the $260s range
Whether or not the house is worth the asking price is a different question. I'm leaning towards "no" since otherwise it wouldn't be on the market for 160+ days! The pictures also don't show it off very well.
Have you been inside to evaluate the tangible and intangible assets?
Have your REALTOR prepare an offer based on the value it represents to you.
There could be 100,000 reasons to justify the increase in price.
None of them need to make sense to you.
One good reason for price high is to keep those who ask 'Why' out of the picture.
They want to sell the home to those who know area value, are decisive, and have the ability to buy. These folks don't ask 'Why?' but the do take action. The answer to the question is revealed 30 days later when the closing is completed.