One advantage a hot market offers sellers (besides increasing the odds of selling their house) is that there is immediate market price signalling

14 Pinecroft Road dropped its price today to $5.450 million, just seven days after hitting the market at $5.795. In a slow market, one might be tempted to wait a bit to see whether a buyer shows up (as was done with this same house back in 2007-2008, when it stayed on for months, dropping from $4.950 to $3.995 million — it never did sell), but currently, with buyers stacked up with nothing to buy, an overpricing is immediately exposed. Smart move.

(Very nice house, by the way, in a good location.)