If a two bedroom home is on the market for over six months could it be overpriced?

I put an offer on a two bedroom two bath home that is priced at $159,000. In my area (PA) there are several 3 bedroom homes on the market for $155,000 or less. The home has been on the market for 198 days. The offer I put in was for $140,000 hoping to get it for no more than $145,000. I feel that's a reasonable price considering the home SHOULD be listed for $150,000 given the market and the other camparable homes on the market and the length of time this home has sat on the market. Will the buyer be insulted?