And 60% of them have 5, 10 or more offers.We need demand to shrink to a fraction of what we have now, either because buyers don't want to buy anymore (and prefer to rent) or they already have bought.

Unfortunately I think cash flow is shrinking in many areas.

In the last year it's closer to 15-30%, so 8% is actually a discount (assuming your market isn't shrinking).Sellers don't need logic to sell, trying to make them sell on logic will fail every time.

If you look at how investment properties perform, the return starts to shrink each year.

When a house can't qualify for financing the competition shrinks.

The Soviet State collapse  "peace dividend" for me equaled a shrinking of military procurement contracts which tanked the SoCal real estate market and caused a brain drain exodus that carried over to the rental market.

A very common reason for investing in a market with a shrinking population and slow job market would be to capitalize on the cash flow.

Maybe shrink or widen the radius on rentometer.com.

Then I would look at the bigger trends, is it a growing market or shrinking market?  

I dont know all of your numbers, but I can see this 700 shrinking to zero.