As the pandemic morphs and changes, the economy and real estate markets are reinventing themselves as well.

“We’ve had a kind of reset in housing,” says Daryl Fairweather, chief economist for Redfin (redfin.com), the national real estate company.

After COVID-19 hit hard in early 2020, this major transformation allowed millions of Americans to work from home. Such remote work let many employees pick and choose their lifestyles.

“As long as they have strong and reliable internet and a willing employer, folks can live in a charming historic town, near a beach or on a mountaintop,” says Mark Nash, a real estate analyst and author of “1001 Tips for Buying and Selling a Home.”

With these new liberties, the pandemic pushed up home prices in small to midsized communities, as well as outlying suburbs.

“Commuting distances from major employment centers have become less determinative in setting home prices,” according to Nash, a longtime real estate broker.

“Now home prices are at a new equilibrium,” says Fairweather, who believes this leveling is largely complete, at least for the immediate future.

“There’s really no reason to see a lot more home price appreciation,” she says.

The slowing pace of home price gains is especially good news for prospective first-time buyers. But while buyers are now gaining slightly more bargaining power, sellers continue to have great sway.

Here are a few pointers for current buyers:

-- Realize that delaying your purchase could cost you many dollars.

Mortgage rates are still hovering near historically low levels. But will that continue in coming years? Michael Crowley, who heads an independent realty firm in Spokane, Washington, says buyers should remember that rental rates are rising in many areas, and there’s no guarantee that mortgage rates will stay low.

“Rental remains a viable option for those whose plans are unsettled. But for many with stable work situations, ownership is a better option than renting. Whenever feasible, it’s usually wise to build equity by paying your own mortgage, rather than helping a landlord pay the mortgage on the building he owns,” Crowley says.

-- Consider bidding on a “stale” property.

During much of the pandemic period, home sellers have reigned supreme. But at this point in the housing cycle, setting too lofty a list price can hurt owners who attempt to “test the market” -- resulting in their listings languishing unsold for a lengthy time.

“A stale listing can represent a huge opportunity for buyers -- assuming they swoop in at the right time when the owner is really motivated and will negotiate,” says Tom Early, a past president of the National Association of Exclusive Buyer Agents (naeba.org).

“Ninety percent of the time when a house goes stale, the reason is that the place was overpriced in the beginning because the sellers were greedy. Then by the time the owners slash their price, most buyers have lost interest,” Early says.

-- Don’t rule out a “spec home” from a builder.

Early, who’s sold homes since 1982, says he’s helped many purchasers score a good deal on a brand-new property that the builders constructed without specific buyers in mind. These are known as “spec” properties.

Though many such homes have already been snatched up by eager buyers, Early says there are still more available for those who hunt them down.

“Seek out builders who still have several ‘spec’ houses in their developments. They need to sell these homes to pay off the bank for their construction loans. Their urgency could result in a good deal for you,” Early says.

-- Recognize that bargains are still tough to find.

Through strategic planning, a 36-year-old investment analyst snagged a better-than-average markdown on a colonial house near his new workplace in an Omaha neighborhood favored by many young purchasers. Because of the popularity of this area, many there must still pay at least list price to avoid losing out in a competitive bidding situation.

Early says there’s no shame in offering list price or slightly more in such a hot area, assuming you’ve done your homework and are convinced you’re not paying more than a few thousand dollars over true market value.

“You can’t let emotion cloud your judgment. But if you’ve found a house you dearly love, years from now you won’t regret that you ran that extra mile to make it your own,” Early says.

-- Don’t fret if your home search lasts into the winter holidays.

Early says that during vacation and holiday periods, many “test-the-market” sellers -- including those free from pressure to move -- take down their “For Sale” signs. Most who are left are highly motivated to cut a deal.

But how do you know which sellers have a strong need to move soon? Early says many owners, along with their listing agents, are remarkably frank about their motivation to move.

“It’s amazing just how candid many people are about their reasons for needing to sell. They’ll tell you if they’ve had serious financial problems or major health issues or if they’re going through a marital breakup, even if that weakens their bargaining position,” Early says. (To contact Ellen James Martin, email her at ellenjamesmartin@gmail.com.)

An increasing number of wannabe homebuyers, many of whom have spent years saving for a down payment, are now pulling back to reassess, though only temporarily.

“People who’ve been stuck in rental units through the pandemic are itching to move. But they’re still reinventing their post-COVID lifestyles and want to be absolutely sure they make the right decision before they commit,” says Eric Tyson, a personal finance expert and co-author of “Home Buying for Dummies.”

Many renters believe it makes sense not to rush to buy, given the current climate. Though home prices are high and inventories of available property remain tight, housing analysts predict that a market more balanced between buyers and sellers is imminent.

"All signs point to the likelihood that the housing market is beginning to ease off the gas pedal,” says Nicole Bachaud, an economic data analyst for real estate giant Zillow.

She also expects that “the end of rampant price hikes may be on the horizon.”

One reason many would-be buyers who’ve already accumulated a sizeable down payment are holding off is uncertainty over their career trajectories. Because the pandemic remains a factor for many working people, it’s unclear where their primary workplace will be going forward.

Take the case of a 37-year-old public relations manager who’s been working from his two-bedroom apartment for 16 months. He has a hefty $200,000 saved for the down payment on a rural house with a yard large enough to raise three Bernese Mountain dogs. The only problem is the area he covets is a two-hour drive from his office, and he’s unsure if his company will allow him to continue remote work.

Tyson doesn’t know the manager in this true story. But he agrees that it’s prudent for the potential homebuyer to wait until he’s sure about his employment situation.

"No one wants to get locked in to a super-commute that steals your time and life,” he says.

Of course, some employees have already returned full-time to their pre-pandemic places of work. Even so, they’re still designing their future lifestyles.

Doro Kiley, a certified life coach who helps clients craft their plans, says that before launching a home search, buyers should first imagine their ideal habitat. That way, they’re more likely to get close to the best possible match.

“Always begin by thinking what you’d really like, as opposed to what you’d settle for,” Kiley says.

Here are a few pointers for buyers:

-- Outline your future on paper.

Partners often differ on ideal housing choices. That’s why Kiley says it’s helpful for both to write down their respective visions and then seek to shape them into a single statement.

Written statements help people clarify their thinking and refine the details of their plans as they move through successive drafts. They’re also a way to help reconcile differing views.

-- Pay close attention to commuting times.

Merrill Ottwein, who sells homes through a Coldwell Banker office, says one of the most wrenching tradeoffs many families face is between a larger, newer house with a longer commute and a smaller, older place that’s closer to a city center and the workplace of one or both partners.

Buyers who consider an outer-tier suburb are often driven by the desire for a larger property or what they perceive to be better schools.

But before you opt for a distant suburb, Ottwein strongly recommends you do morning and afternoon rush-hour test drives. This way, you’ll know more precisely what sort of traffic to expect if you live there.

Ottwein says buyers should disabuse themselves of the notion that the current level of traffic congestion on their path will remain static. The odds are that the traffic will worsen as the years go on.

-- Remember that your kids can thrive without a large yard.

Many people with young children hang on tightly to the hope that their kids will have a large backyard where they can play, just as they did as children. This aspiration can influence them to pick an outlying suburb at the expense of their convenience and commuting time.

But are the tradeoffs necessary to acquire a large piece of land worth it? Not necessarily, says Ottwein, noting that these days children often spend much more time in organized athletic and recreational activities than did their parents.

“Once the pandemic is behind us, kids will again become programmed to the hilt with team sports, music lessons and school events. They have little time for the sort of free backyard play their folks remember so nostalgically from childhood,” he says.

-- Take your time when shopping for the right neighborhood.

These days, many seeking to own a house in a popular neighborhood often continue to face rival bidders, though perhaps fewer than in the past. Because of that, many buyers take regrettable shortcuts, often rushing into a purchase without analyzing whether the property they’ve picked truly matches their lifestyle.

But because so much is at stake, Ottwein urges buyers to slow the process down or face the possibility of a mistaken choice.

“It’s always important to keep your eye on the ball when making a big financial purchase. You really won’t be happy if you win in a bidding war yet buy a place unsuited to your happiness,” he says.

(To contact Ellen James Martin, email her at ellenjamesmartin@gmail.com.)

For many months during the pandemic, wannabe homebuyers have had to battle rival purchasers. Due to a severe shortage of available properties, many have endured fiercely fought bidding wars that ended in frustration and tears, especially when a coveted house is lost.

Such bidding struggles -- so common in the COVID era -- have pushed prices to record highs, says Lawrence Yun, chief economist at the National Association of Realtors (nar.realtor).

“Home price gains and the accompanying housing wealth accumulation have been spectacular over the past year,” says Yun, noting that a stunning 94% of U.S. metro areas have experienced strong home price increases so far this year.

But, finally, there are a few glimmers of hope for would-be buyers.

“There are signs of more supply reaching the market and some tapering of demand. The housing market looks to move from super-hot to warm, with markedly slower price gains,” Yun says.

What these changes mean is that would-be buyers who’ve yet to win a property now stand a better chance, assuming they take a strategic approach.

“These days, bagging a home remains a high-stakes game. But it’s finally one that savvy buyers can conceivably win if they play their cards right,” says Tom Early, a longtime real estate broker.

Are you planning to reenter the home-buying market in the near future? Here are a few pointers on how to use what leverage you have:

-- Choose a real estate agent with contacts and negotiation skills.

Roy Lewicki, an expert on the art of negotiation, says whom you select to represent you when buying property can be crucial.

Few buyers screen agents before selecting one, but that’s unwise, he says. Start by creating a short list of candidates, searching for those with proven track records selling a large number of homes in your target neighborhood.

“Seek out people who are ‘network leaders’ in the area, meaning they have the knowledge and expertise to provide you excellent service. They’ll also know the true value of any given home,” says Lewicki, the co-author of “Essentials of Negotiation” and other books on the topic.

Using your short list, call for references from several of the agent’s past clients, asking how well their deals were handled and whether the agent demonstrated strong negotiating skills. Also, ask if the agent helped identify major defects in the property before the deal was sealed.

In evaluating candidates, Lewicki suggests you screen for one who has the same “negotiating profile” as you.

“Some buyers -- such as investors who could easily walk away if they lost a particular house -- appreciate an agent who is an aggressive negotiator. But other buyers, like a job transferee who has just one weekend to find the right place before catching a plane back on Sunday night, may feel uncomfortable with an agent who drives a hard bargain,” says Lewicki, a professor emeritus at Ohio State University.

-- Try to avoid including a lawyer in your deal-making.

Buyers intent on getting the best possible deal may assume their strongest ally in the bargaining process would be an attorney. But Lewicki says the involvement of a lawyer can have a chilling effect on otherwise cordial negotiations.

“The legal process is adversarial. Bringing in an attorney could scare the other side into getting its own attorney, which could escalate tensions and prove counterproductive for you,” he says.

Of course, there are situations when it’s a legal requirement to have an attorney at the bargaining table. The use of a lawyer could also be advisable to help break a deadlock when negotiations falter over the acquisition of an unusually large or expensive property.

But generally speaking, Lewicki says buyers are more likely to achieve a positive outcome if they use a knowledgeable real estate agent to negotiate on their behalf at the bidding stage.

-- Use your home inspector’s report as a negotiating tool.

As Early insists, nearly every buyer is justified in hiring a professional home inspector.

“It’s just common sense to make your purchase conditional on a satisfactory inspection that looks for defects both minor and major,” Early says.

He recommends buyers seek a home inspector who’s obtained advanced training and certification through a professional organization, such as the American Society of Home Inspectors (homeinspector.org).

“If your inspection reveals major flaws, your inspector’s report will strengthen your case for remedies,” Early says.

Some inspectors charge extra for a written (versus oral) report. But Early says it’s worth the extra expense.

-- Remember that timing can be critical to cutting a good deal.

Sometimes you happen upon a property that speaks to you so strongly that you don’t want to delay for fear you could lose the place to another bidder. Years ago, Lewicki’s family had this experience after he was first offered a job at Ohio State University.

Lewicki’s wife was looking at homes near campus when she came upon the perfect place: a Dutch Colonial set in an attractive neighborhood with top-rated public schools. She quickly realized the home would be ideal for her family and that two other eager prospects were waiting outside to see it, as well.

Rather than involve herself in lengthy negotiations, her strategy was simple: Offer the full asking price and make sure her agent drafted her bid the moment she completed her visit -- an offer that won her the house.

“Timing is huge in negotiating. You have to strike when the timing is right,” Lewicki says.

(To contact Ellen James Martin, email her at ellenjamesmartin@gmail.com.)