1. I expect the FED will continue its policy of higher rates. They were slow to raise rates and they will be slow to see the full impact of these higher rates.
2. Buyers will be obsessed with "what if" mentality: if they wait, will prices come down further? Smarter buyers will rather use this moment of uncertainty to negotiate thereby having the opportunity to focus on quality, not just price. There is one thing worse than buying a bargain: owning one!
3. Sellers will adjust their expectations and lick their wounds by not having sold at a premium when they could have. They will still do very well but will have to be far more patient. Many will offset 'losses' if they are buying something else.
4. Inventory levels will increase, but under-building, trillion dollar infrastructure building, repairs and replacement are almost certain to make construction costs continue to rise.
5. The threat of a global recession may push down the prices on many things (energy may be the outlier). Bergdorfs and Neiman Marcus are already discounting ....in September!) Might we even see some deflation?
