>but it's still an actual market

It depends on the swing of the market if it's a buyers or sellers market.

In the past there was far more spread in housing prices. These days real estate agents tend to follow a few market making sources for setting those prices, along with personal home sellers looking at 'internet prices'.

>inventory at an inflated price and assume the whole rest of the market will follow you.

When you target particular areas you absolutely can.