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The national median existing-home price for all housing types is forecast to rise 5.1 percent to $219,700 this year. The median new-home price is expected to increase 6.0 percent this year to $245,200 (NAR).  – National Association of Realtors

David Lereah, NAR’s chief economist noted on January 10th, "A lot of demand has been met over the last five years, and a modest rise in mortgage interest rates is causing some market cooling. Along with regulatory tightening on nontraditional mortgages, there will be fewer investors in the market this year. The 30-year fixed-rate mortgage is likely to trend up gradually to 6.7 percent during the second half of the year. This will preserve generally favorable affordability conditions and keep the housing market at a more sustainable sales pace."

For months we have been reading about real estate bubbles and changing real estate markets.  At times it seems like the local and national media are trying to scare us with all the doom and gloom.  The truth is that over the last 5 years we have enjoyed a brisk market with unparalleled appreciation in many areas, and low interest rates.  It has been a sellers market. 

I used to have to ask my clients if they could meet me during their lunch hour if a house suddenly came on the market that fit their needs.  We would get to the house as other buyers were leaving and have to write an offer on the spot and then negotiate through multiple offers.  That is a sellers market; there were more buyers than sellers. 

Today we are in a more balanced market.  Sellers no longer have the advantage.  For buyers that means more choices, and more negotiating power, no more lost lunch hours.  For sellers balanced market means your home will be on the market longer, you will be competing with more sellers. Home owners need to make sure their house is in good shape and priced right before the sign goes up.