The couple doesn't want to buy a home only to see it's value plummet with a market that goes south. In just a few days, however, the couple changed their tune. I must say, there is a huge amount of conflicting information circulating amongst real estate 'news' sources in the past two weeks. Yesterday, the market was up, and there were articles in the newspaper about how the median price of homes locally is still going up, even if the number of houses sold has slowed a little of late. Over the weekend, after the market had a bad week, there were articles about the real estate market slowing.
Transitional markets are hard to call for both buyers and real estate agents.
Real estate agents are bound both by ethics and by law to provide certain information to buyers. That appears to mean if a growing number of sellers are dropping the listing price, as is the case in Silicon Valley, the real estate agent should know because the local multiple listing service yields such information and the agent ought to disclose the information to buyers. Without the information, a buyer could buy a home whose price has not yet dropped only to later suffer lost value when he or she attempts to sell their home. That makes sense, but it isn't always that easy. Disclose but don't forecast Real estate agents and attorneys are careful to make a distinction between interpreting material facts and forecasting what those facts will portend.