Our market is on its way to a "balance." 

Sellers are accustomed to getting close to what they ask.  Today Sellers are learning buyers are "pushing back" a little on list prices. This disparity results in higher "Days on Market" and more terminations during option periods.

Buyers are simply more cautious about appreciation possibilities after years of increasing values. Can't blame them, who wants to get caught buying at the peak if values soften? Problem is they may forego what they want based on fears of softening values instead of understanding these market dynamics simply foster indecisiveness.  They'll miss out. 

Sellers are typically unwilling to understand this mindset so you see listings lingering for months with slight price reductions. We refer to this as "chasing the market," not meeting it.  Sellers miss a good opportunity too. 

My suggestions for sellers in this market includes a closer look at the market dynamics and your particular micro-market.  Don't chase it, meet it.  If you don't want to meet it then consider leasing to create cash flow.

In time the disparity between buyers and sellers narrows, and happier (and understanding) sellers have swallowed the bitter pill of market reality.  Buyers step up with less fear of overpaying and eagerness to buy.

In all cases, buyers buy what they see so as always sellers need to make it outshine the competition to get their highest and best in this or any market.

Like this picture, don't always listen to the naysayers only to miss out on your goals.  Look around, make a good informed decision and bag the target!