Do you want to sell your home, or would you like to sell but don't need to sell?
Selling a property is probably 80% pricing. The List price is a tool to attract buyers, so by raising the price, you just shot your Realtor in the foot (and your own foot too). Experience has shown that in order to get you the best price a couple things need to happen:
First, we need to be priced within five percent ot the selling price-that's plus or minus 2.5%.
Second, a properly priced and marketed home can expect 10-12 showings or two offers within the first two weeks of market time.
Third, we need to get your home sold in the first 30 days of market time to get you othe best price, after than the longer it sits, the less you make.
I don't know your conversation when you discussed the first price. Did you discuss what comparable homes have sold for in the last 30 days? I do not know your market, however MOST markets are buyer's markets in the US right now (but not all). We are in the middle of spring market now. Your home probably should have been listed four to six weeks ago.
Most families move in the summer, after school is out. So for that to happen, they need to close escrow in late June, so they need to open escrow in late April or early May. So you are behind the eight ball time-wise.
Before cancelling I would ask for a meeting to discuss pricing and timing. The Realtor may be right. When I meet to see if I can help a homeowner the pricing discussion is critical If we cannot agree on price, I may very well not take the listing.