The house dropped in price again. It's now listed at $162,900. It's still $3,000 more than what Brent and I started at, but considering the original price was $169,900 – the price is becoming more reasonable.
You would think that the home owners could take the hint on the price though. Their house has been on the market for 6 weeks; mine went under contract in 6 days. Apparently, they aren't in a rush to move.