There are a number of overpriced properties near me. I'm in a northern town though and there are still a steady flow of people relocating from the Midlands and further down the country that will eventually pay these prices, thinking they are getting a bargain.
Meanwhile, anything sensibly priced is snapped up by local residents within a few days of being on the market because there isn't much of it available, it's still affordable, even on lower wages and they don't want to move too far out because school places are in very short supply...
Plenty of overpriced new build plans being put forward. No mention of any amenities to go with them though. So I can see why less people are putting their houses on the market unless they really have to move. And that's before you factor in the fluctuations in mortgage rates thanks to recent worldwide events. Maybe the sellers need to sell their houses at those prices now, to have a big enough deposit to be able to afford monthly repayments on their next purchase.
Not the responsibility of any potential purchaser, but vendors often test the waters to see what they can get away with. Never seen toilets as flower pots like that before.