For a seller, the rude awakening is that you will actually need the expertise of a good marketing agent to get your home sold. Real estate is expected to see single digit appreciation this year, so buyers should not expect prices to drop. It is so far, still a sellers' market - just a slightly slower one. There are also more homes on the market. This actually gives buyers a choice, a rarity in the last year.
Consumer confidence is down and there is uncertainty in the air.
Some experts say prices will go down. However, as we well know in Santa Cruz, it is usually a small adjustment in price, and people who wait are usually priced out of the market. It won't be the frenzy of competition that bid the homes to unimaginable prices as we saw last year. Houses will have to be priced right to sell, and buyers will not pay for overpriced homes. If you are thinking of buying now is a very good time.