It's got nothing to do with people being speculative or "sitting on the sidelines". 

If it’s a 2 bedroom on paper and a 5 bedroom in reality, then this is a significant problem and is probable a big reason why you say it’s been sitting on the market.

Quote from @Ivan Castanon: For the past 6 months I’ve been looking for houses (both SF and MF) that can produce at least a little bit of cashflow with around 20% - 30% down.However, I’ve started to realize that this is pretty much impossible these days.I currently have $110k sitting in my bank ready to be invested but I just can’t find anything that will at least produce a 3% COC return.

Again, it gets back to your overall view of the economy and the near future.I would sit out investing near term (12months). 

Personally if it is generating $110k cash flow whether before or after taxes, I would just sit in it.  

$1,500-$1,600 is about the going rate for a 2/2 in most average areas of BR, but I can see where some neighborhoods would get more.Another thing to think about - if the property is sitting vacant right now and you have ready and willing (and qualified) tenants, then the opportunity cost of waiting an extra month or two is $1,550/month.

We're sitting on $400k and have good revenue right now.

They might accept your same offer 30 days from now, so sit tight and keep checking in with me. 

The 10-year treasury is currently sitting at 4.62% as of 1/24/2025 up from 3.73% on 9/13/2024, reflecting a 23.8% increase over the last 4 months (Source).

It also seems like a lot of the condos sit on the market for 3 months or more.