“Is this a stand-off with buyers hoping for prices to come down, or will they soon realize that to live on the hill you have to pay asking?”

I don’t know the answer to that question but if you look at what actually sold (with maybe an exception or two) the sold price was not near the original asking price. So if you just look at history, the buyers have been waiting for the sellers to blink and then pouncing.

Certainly adds up to very strong pent up buyer demand but not desparation to get in at any cost.