Although there are many listings that do not sell quickly, and some that end up getting withdrawn before they ever sell, many others go quickly, often with multiple offers. How can both those things be true? It has to do with the ease and speed of getting information about housing. Buyers and potential buyers can put themselves on search lists, and can potentially find out about new offerings before their agent gets informed. Since it's human nature to get excited about the new and exciting, buyers commonly look at the most recent listings. If they see enough activity on a property, or if they just know from having looked at so many houses that a certain one will go right away, they may proceed to an offer. This is exacerbated in seasons where people traditionally move or relocate, so that the normal pattern of looking and waiting gets disrupted, and what is going to sell sells quickly.
That doesn't necessarily mean that sellers shouldn't list at an off-time, since the supply will typically be much lower, and those looking may consider a property that they otherwise would pass over. However, the general rule that activity breeds more activity holds true, and sales proceed at a faster pace when the timing seems more urgent.
My advice to buyers is to consider the true value of a property to you, and try to put your market information (or misinformation, in some cases) into the background. Move at a reasonable speed, both to keep the seller engaged, and to appear more serious. For sellers, I would say that you have to consider the micromarket that your home is in, and put aside the broader picture. Listen to your agent, and remember what s/he said at the very beginning was the price that the property would bring. It's right more often than you might think! So, even if you've "tested" a higher price, don't get wedded to it, and don't wait too long to lower it, if you are not seeing action at your current listing price. After all, money is lost when a sale is delayed, and that's important to consider as well.
