As a real estate market participant, as a buyer or seller, moderation should be the key behavior.
Moderation is simply staying within reasonable limits especially when your budget is concerned. As a seller, moderation is staying within realistic expectations when pricing your home to sell.
I remember back around 2004 and 2005. Prices were climbing rapidly. Buyers were being outbid so they kept offering higher amounts.
Mortgage lenders were getting creative in such ways they offered financing to consumers who in the long run had no way of repaying the debt.
It was the real estate market's death spiral. OK, it was not death. But it was like a like a trip to ICU followed by rehab for about five or so years!
Now the market has turned.
Buyers are cautioned to not get caught in the same traps. The lenders have tightened the lending process which will stop some from making a bad decision. Those who have not been in a coma should know what happened last time.
Responsible real estate agents will remind clients to stay focused on the things that matter including budgets.
Still, it is a good time to buy a home you can afford.