You're right, of course, to be skeptical. Your "micro-market" has its own rules. In addition, you have a fairly unusual property but in a good location in relation to the overall area.

It's possible that your realtor is merely giving you his opening position. If he is really experienced, and has survived the bloodbath of the past few years, he could be testing you to see if you really have the ovaries to deal with him realistically.