This fall, housing sales were expected to increase strongly. But after a September bounce, the market has turned listless. That’s because mortgage rates have once again started rising.

“The decline in prices, fewer new listings and longer days on the market indicate a sluggish housing market,” says Jiayi Xu, an economist for Realtor.com, the home listing company.

Not surprisingly, affordability issues and major political change are at the heart of the current slowdown in real estate sales.

“The U.S. housing market is split into two groups: first-time buyers struggling to enter the market and current homeowners buying with cash,” says Jessica Lautz, an economist with the National Association of Realtors (nar.realtor).

All told, homeowners are sitting on $17 trillion in total equity, with few feeling any urgency to sell. But those who do have urgent reasons to sell should adapt their planning to reflect current market realities.

“My suggestion for sellers is to make their property move-in ready. Remember that the cash flow of buyers is not unlimited. Especially after saving, saving, saving for a down payment and closing costs, most buyers are in no position to take on big remodeling projects,” says Rich Rosa, a Chicago-area real estate broker who works exclusively with purchasers.

What does move-in ready mean? For buyers it translates to an immaculately clean house that’s freshly painted and nearly 100% free of clutter.

“For instance, in the kitchen, your counters should be totally clear. ... You want buyers to know there’s ample workspace in your kitchen without renovation work,” says Rosa, who’s represented buyers since 2005.

Here are a few pointers for sellers under pressure to move soon:

-- Find an assertive listing agent to advocate for you.

“In all markets, selling a home to make an immediate move is an anxiety-producing situation, and all the more so at a time of economic uncertainty,” says Stacy Berman, a longtime real estate agent in suburban Maryland.

She recommends you search for an agent with extensive experience selling properties in your particular community. Another key is to rely heavily on referrals from neighbors and friends who’ve sold in the same area.

Don’t know anyone from whom to seek referrals? Another approach is to call the managing broker of a major realty office in your area. Ask the broker to refer you to a veteran agent with a substantial track record selling homes similar to yours in your price bracket.

-- Consider the competition before pricing your property.

Before your home is listed and available for public showings, your agent will undoubtedly suggest an asking price. But Eric Tyson, a personal finance specialist and co-author of “House Selling for Dummies,” says that prior to accepting any pricing recommendation, all sellers should do at least a nominal amount of research.

“Ask your agent for a list of properties near your home that have sold recently. Then get in your car and drive by these homes, noticing how they compare with your own,” Tyson says.

If your drive-by tour raises questions in your mind about whether your listing agent is suggesting too high or too low an asking price, request a justification for the recommended price. Then reach your own conclusion.

-- Consider pricing slightly below rival properties.

Remarkably, sellers in a desirable area can often receive more for their property if they price it just slightly below its apparent market value.

“Pricing a little lower than the competition can generate excitement. More people are likely to bid if they perceive the property to be a good value. And this can create an auction effect that could help you at the bottom line,” Tyson says.

-- Seek to delegate much of the work of preparing your home for sale.

Typical sellers, especially those who have the luxury of time, spend several months or more preparing their property for market. They cull through belongings, prune shrubs, paint wherever needed and clean exhaustively.

But if you’re selling under pressure, chances are you’ll have no more than a few weeks to get your home in showing condition.

One obvious way to cut back on your home preparation time is to hire contractors for work you might normally do yourself, even for smaller jobs such as cleaning.

-- Develop a contingency plan for your property’s sale.

Sometimes even a home that’s in good condition and correctly priced will fail to sell quickly for reasons hard to determine.

To avoid panic in this situation, Tyson recommends that people who must sell in a hurry develop a Plan B for coping if the process takes longer than expected.

Perhaps you’ll arrange for a trusted family member to take responsibility for your home sale. Or maybe you’ll want to buy time by renting out the house for six months or so.

“You’ve got to look at the big picture. What matters is not only your financial well-being but also your emotional health,” he says.

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

The pandemic drastically altered Americans’ housing preferences. Since Covid-19, many more first-time buyers aspire for ownership of a detached, single-family house, ideally with a fenced yard big enough for a game of badminton or croquet.

But countless financially-constrainedfinancially constrained renters are simply unable to afford this idealized ownership vision due to their overall high cost of living, including their student loan payments and child care expenses. That’s why more young buyers are settling for a more moderately priced condo, says Maya Hyman, who sells homes through the Compass Realty firm.

“It’s a fabulous time to buy a condo, because there’s downward pressure on prices,” says Hyman, noting that the supply of unsold units has increased recently, putting more condos within reach of renters.

Fred Meyer, a long-time real estate broker in Massachusetts, says the monthly payments for a condo can be as low or lower than rental charges for comparable units in the same region.

He says many young apartment renters are especially highly motivated to escape their rent burdens in favor of ownership over what he calls “the pointless treadmill of renting, which buys them nothing -- —not even equity.”

But he cautions that condo buyers should be exceptionally choosy in their selection of a condo, —making sure the building they pick is well located and financially strong.

Here are a few pointers for condo buyers:

-- Look for a building in an area with a resilient job base.

The vitality of any local real estate market is tied closely to the employment strength of the area. But homebuyers shouldn’t count on a single employer to keep the local economy robust.

“To guard against the impact that layoffs can have on property values, buy in an area with multiple major employers. For example, in the Seattle area, it’s unlikely that both Microsoft and Starbucks would close their headquarters there simultaneously,” Meyer says.

How can you investigate the strength of a local economy?

“Beyond internet sleuthing, one way to research an area is to visit offices of the local Chamber chamber of Commerce commerce and ask what’s happening to jobs in the area. Also ask your agent for employment metrics,” Meyer says.

By avoiding an economically depressed region, you not only increase your chances of owning a salable condo. You also increase the likelihood of living there happily.

“It can be unpleasant living around a lot of people who’ve lost their jobs,” Meyer says.�

-- Examine statistics to validate your hunches about the right condo building.

Your subjective reaction to a condo building can help with the selection process. But you -- along with your real estate agent -- will also want to seek out objective information to better analyze the strengths and weaknesses of a particular building.

“Ask your agent to look at the resale history for the building going back as far as four years. Take note of the median number of days it has taken to sell a unit there. The more days it takes to go from list to sell, the less liquid the building has,” Meyer says.

-- Show skepticism about a building with unusually low condo fees.

Nearly all condo buildings impose “condo fees” on their owners. Among other expenses, these monthly charges cover the cost of routine upkeep on a building and its grounds, along with support services, -- like the concierge at the front desk.

Michael Crowley, a real estate broker in Spokane, who works exclusively with buyers, says some purchasers mistakenly shop for a building with the lowest possible monthly fees. But he warns against that approach.

“In truth, you typically get what you pay for in condo fees. You certainly don’t want to live in a place that’s neglected upkeep to keep fees low. That could prove a very poor investment in the long run,” he says.

In addition, check the “reserves” of the building -- —meaning the amount of money set aside for major renovations.

“Deferred maintenance could well mean that owners will one day be hit with a huge bill for their share of the cost of a new roof or new elevators. Such a big expense could smack you with little warning,” Crowley says,

-- Don’t buy in a building with an excessive number of renters.

Meyer is wary of condo buildings where a large number of units are not owner occupied. That’s because renters have a lesser stake in the maintenance of a property.

“Owners who live in their units feel a natural pressure to ensure there’s sufficient money available for upkeep. Renters feel no such natural pressure,” he says.

What percentage of owner-occupants is enough? That depends on the location of the building. In most cases, Meyer says you’ll want to see more than half (of?) the units occupied by owners. However, this rule may not hold in a resort community where seasonal rentals are the norm.

Even though it’s not wise to choose a building with a large number of renters, it’s also important to avoid a building that prohibits owners from renting out their units should they wish to do so.

“Imagine you had to move suddenly for a job transfer and you couldn’t rent your unit. You shouldn’t give up that prerogative,” Meyer says.

-- Seek out the best available unit in the building of your choice.

Even in the ideal condo building, not all units are created equal. Some are much more salable.

“Two units could have the same exact floor plan. But one that overlooks a beautiful park will be worth a lot more than one which overlooks a parking lot,” Meyer says.

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

When the Federal Reserve dropped its benchmark interest rate on Sept. 18, a couple of wannabe homebuyers in Colorado felt sure it would translate to lower mortgage rates. They hoped that would finally allow them to escape their rental for a townhouse of their own.

But the relief experienced by the Gen Z couple -- a nurse married to an accountant -- was short-lived. Mortgage rates quickly rebounded, edging them back up out of their affordability range.

“We’ve been trying to buy since our baby boy was born three years ago. We saved like crazy to build up a down payment. But unfortunately, we’re still stuck in the tenant mode and feel helpless about that,” says the nurse.

Logan Mohtashami, a home industry analyst for HousingWire, a mortgage industry newsletter, doesn’t know the Colorado couple in this true story. But he empathizes with such aspiring yet frustrated homebuyers.

“This is a very confusing time for consumers,” says Mohtashami, who expects 2024 to mark the third straight year of declining home sales.

Despite the hurdles, he predicts that die-hard buyers will persevere, pushing forward until they reach their goal. But they would be wise to tread carefully.

During a period of mortgage rate volatility like this one, home loan experts caution that it’s always possible for buyers to overspend their budgets.

Here are a few pointers for determined buyers:

-- Realize that overborrowing remains a risk.

Keith Gumbinger, a vice president at HSH Associatess (hsh.com), which tracks mortgage markets for consumers, notes that most lenders work on commission.

“The bigger the loans they make, the higher their profits,” Gumbinger says.

Though household expenses have risen dramatically in many categories, lenders still use mortgage applicants’ gross income as the main gauge of their borrowing capacity.

“Lenders don’t know how much money you have left over after you’ve met all your other obligations ... They mainly focus on the long-term debts on your credit reports, such as car loans and credit card balances,” Gumbinger says.

Before agreeing to take out a mortgage that could make you house-poor, he encourages you to get a grasp of the mortgage lending process and to do a thorough inventory of both your expenses and spending priorities.

-- Review your pay stubs carefully.

It’s not only income taxes and Social Security contributions that come out of typical paychecks. Many people also have their net pay reduced by health insurance premiums as well as group life insurance and retirement savings plan contributions.

Although lenders focus primarily on gross income, “what matters most is the bottom line on your pay stub, not the top one,” says Mark Nash, a longtime real estate broker and author of “1001 Tips for Buying and Selling a Home.”

“When it comes to income, what matters most is the bottom line on your pay stub, not the top one,” Nash says.

-- Include basic expenses in your calculations.

No one knows for sure how much energy costs could ascend in coming years. But energy analysts say it’s far more likely that the costs for heating and cooling a home will rise rather than fall.

Nash says many first-time buyers are especially vulnerable to rising commuting costs when they leave an in-town apartment to obtain a detached home in the suburbs.

“People who commute by car ... should allow space in their budget for increases every year. Likely, their commuting costs will rise more quickly than people who use public transportation,” he says.

Remember, too, that high energy costs can affect many sectors of the economy.

“Energy costs ripple through nearly every element of our daily lives,” Nash says.

-- Take into account your expenses for medical and dental care.

Most working-age Americans with health insurance obtain it through a group policy from their employer. But many employer-based insurance plans are less generous than before. Chances are your share of the premiums is increasing, as are your deductibles and co-pays.

In doing an inventory of your health costs, be sure to take into account the rising cost of dental care.

“Many people have little or no coverage for routine dental visits, such as regular exams and cleanings. But the most overlooked dental expenses are for unexpected procedures, like a bridge or root canal. These are big-ticket items that can really zing your budget,” Nash says.

-- Reserve enough money for your child-related outlays.

Do you hope to have children within the next few years?

If so, you’ll want to factor the costs of child care into your calculations on how large a mortgage to carry, Nash says.

“It’s amazing how many people can’t afford kids because their mortgage payments are too high. The shame of it is they didn’t think through the trade-offs before buying that big house,” he says.

As Nash notes, the cost of day care for a baby can easily rise above the $500-a-week mark, causing some mortgage-strapped families to forgo a second child altogether.

“It’s sad to think you’re going to give up the larger family you want just to get a bigger house with more bells and whistles,” he says.

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