Recent numbers make one thing clear not every list price deserves the same response.
If you are trying to decide how seriously to take current asking prices, the short answer is this use them as a signal, not a conclusion. In Keego Harbor, MI, the latest numbers show a large gap between active pricing and recent closings, so your next move should be based on where homes are actually getting to the finish line.
A typical active asking price recently was $862,500, while a typical new listing entered at $450,000 and a typical closed sale was $187,000. That does not tell me every home is overpriced. It tells me Keego Harbor, MI has a market with meaningful separation between segments, and that separation can distort expectations if you only watch what is listed and ignore what is closing.
For a seller, this is a pricing discipline issue first. For someone planning a smaller move, it is a sequencing issue. Supply was 1.33 months recently, and offers were coming in at 99.8% of asking on closed transactions, so the market will reward homes that are positioned correctly. Still, a typical closed sale took 80 days, which is long enough to punish a weak opening strategy. Short version pricing mistakes can cost both time and leverage.
Review active competition, but anchor your decision to recent closed results. Decide in advance what price would justify waiting and what price would justify action now. If your goal is to sell, set a firm adjustment plan before you launch. If your goal is to move into something smaller, define your purchase ceiling before you rely on optimistic sale expectations.
