The available pool is large enough to reward careful comparison.
If you are comparing homes in Tempe, AZ, I would not skip the supply picture. Last month, there were 434 active homes and 3.91 months of supply, and that keeps my focus on comparison rather than urgency alone.
There were 434 active homes last month, and supply stood at 3.91 months. That gives me enough evidence to say buyers still have choices, while sellers still need a strong position.
For a buyer, I would compare more homes before I settle. For a seller, I would make sure the first price is one I can defend.
Review several close alternatives. Check whether the ask fits the recent sold level. Use the active count and the supply measure together before making the call.
