Geopolitics isn’t supposed to influence homebuying decisions. But that’s one factor, along with inflationary concerns, that now has potential purchasers backing off in droves. The Middle East is a long way from the small town of Winona, Minnesota. But thoughts about war and peace are among the factors causing wannabe homebuyers there -- and well beyond -- to pause their plans.

Take the case of a divorced dad in Winona who has custody of his two young sons. The man, a vice president at a regional bank, is living with the kids in a cramped apartment. He’d love to buy a big house for his children, and is weighing the pros and cons of executing a purchase now.

“As a banker, I believe in the underlying soundness of the U.S. economy. Even so, I’m still cautious because so much change is occurring in the country and around the world. Also, I think that, with so much property lingering unsold in our area, lower prices are possible in the near future,” he says.

What’s compelling for the banker is that he’d love to provide his kids a place where each boy would have his own bedroom and both would enjoy a large, wooded lot for play. He has his eye on a 1907 Victorian with 5,700 square feet of living space. The place, on the market for more than a month, has a fully renovated kitchen and a two-car garage.

With so many houses up for sale nearby, the banker is convinced he could negotiate a good deal on the Victorian or another equally spacious property.

“Given the way the market is now, I’m in no hurry,” he says.

Housing economists understand the hesitancy of many would-be buyers, a trend that is now manifesting itself strongly among companies in the homebuilding field.

“Rising inventory levels and prospective homebuyers who are on hold waiting for affordability conditions to improve are resulting in weakening price growth in most markets and generating price declines for resales in a growing number of markets,” says Robert Dietz, the chief economist for the National Association of Home Builders (nahb.org).

As it happens, homebuilder sentiment has fallen its lowest level since 2012.

“Buyers are increasingly moving to the sidelines due to elevated mortgage rates and tariff and economic uncertainty. To help address affordability concerns and bring hesitant buyers off the fence, a growing number of builders are moving to cut prices,” says Buddy Hughes, a North Carolina builder.

With his background in finance, the Minnesota banker, like a small number of potential buyers, sees opportunity in the current situation for buyers.

“I have been undecided on homebuying for several months. But my overriding priority right now is to accommodate my boys and their needs. So I don’t want to wait too long. Both my boys are still in elementary school, and I want them to have a real home while they’re still young,” he says.

Here are a few suggestions for current buyers with young children:

-- Think through how much yard space you truly need.

Many parents, recalling their own carefree childhoods in a suburban setting where big yards were the norm, assume their kids will fare well living in a similar setting. But what worked for you growing up isn’t necessarily best for your kids, says Eric Tyson, a consumer advocate and co-author of “Home Buying for Dummies.”

“Children are much more programmed than they used to be. There’s less spontaneous play,” he says.

Rather than focusing heavily on yard size, Tyson suggests you consider the outdoor features of a neighborhood, including parkland and bike paths.

As Tyson says, neighborhoods where yards are smaller are often more family friendly.

“Kids can be closer to their neighborhood friends. They don’t have to be driven around to see their playmates,” he says.

-- Consider that you can often obtain more floor space in a two-story abode.

Many older home shoppers are looking for a single-level ranch-style house that doesn’t require them to climb stairs.

But people with school-age children may wish to consider the advantages of living on two levels, Tyson says, as it’s easier to contain the noise and mess of children if their bedrooms are separated from the common living space of the family.

Also, young families can typically get more space for their money in a two-story house.

-- Look for a floor plan that performs well for your family.

Tyson says it’s more important for those with young children to have a floor plan that encourages togetherness than a very spacious place.

“You probably won’t use a formal dining room, except on Thanksgiving and Christmas. You’ll find more use for an inviting, good-sized family room,” he says. Large, comfortable common rooms help draw children out of their bedrooms.

-- Try to buy as many bedrooms as you can afford.

Tyson insists it’s more important for families to have an adequate number of bedrooms than large bedrooms or a sumptuous primary suite.

“Families with enough bedrooms can give siblings with different school schedules their own rooms. That’s an ideal way to help ensure that all the kids get enough sleep,” he says.

-- Ensure that adults in the family make the final housing choices.

Not infrequently, school-age children will mount a protest against any housing move their parents plan because, as Tyson says, “children like constancy.”

To appease unhappy offspring, some parents let their kids cajole them into the wrong property. But Tyson says children usually adapt quickly to a move, and it’s unwise to let their feelings dominate your plans.

“Buying a house is a massive financial decision. Only the parents can plot the most prudent choice,” he says. (To contact Ellen James Martin, email her at ellenjamesmartin@gmail.com.)

Two child psychiatrists in Seattle -- who married just five years ago -- already have three kids of their own. That's why they're hoping to trade their small split-level for a much larger house in the upscale suburb of Redmond, Washington.

"Our med school loans are coming down, and our salaries are going up. So we're driven to find a larger place with at least five bedrooms and a big family room where we can all stretch out, including our two golden retrievers. We also want an in-ground pool and strong local schools," the wife says.

Property in Redmond hardly comes cheap. Median priced homes top $1 million. Yet the psychiatrists are determined to get a fair deal in the competitive market.

Across the nation there's been a flattening in home prices from their pandemic-era peaks. In fact, buyer's markets are beginning to emerge in some Florida and Texas neighborhoods. But one exception to this overarching trend involves a select number of luxury markets, like Redmond, where home values are still on the ascent.

Orphe Divounguy, a senior economist for Zillow, the Seattle-based real estate company, doesn't know the psychiatrists in this true story. But he's not surprised that demand for homes in areas such as Redmond remains robust.

"Despite a slower market, home prices have continued to climb -- a promising sign for sellers considering listing their properties. Luxury home values, in particular, have remained resilient, even as both buyers and sellers took a more cautious approach after the April stock market volatility," Divounguy notes.

Are you pursuing the purchase of a luxury property in an upper-end area? If so, these few pointers could prove of value:

-- Define exactly what you desire in your next home.

Many wannabe homebuyers have only a vague notion of the sort of domain where they would be happy. But it's worth your time to specify exactly what you want in a property, says Carol T. Murphy, a longtime agent for Coldwell Banker in Connecticut.

Murphy says trade-up buyers have an advantage over starter-home purchasers who've yet to make a home-buying decision. Those moving to a second or third home can draw on experience.

"Make a list of everything you do and don't like in your present home. Then itemize the most important features you're seeking in the new place," she says.

She cites the case of a couple of her clients -- both hospital administrators -- who successfully pursued their dream of a much more spacious place with two primary bedroom suites with adjoining bathrooms. They also wanted a dedicated exercise room and a large game room for entertaining friends and family.

The couple found nearly everything they were seeking in a 3,200-square-foot contemporary-style house with a three-bay garage. The 10-year-old property had been custom built and was well constructed.

-- Don't ignore properties that have stayed on the market longer than average.

Many buyers are suspicious of any property that's gone unsold for an unusually long time -- especially if other properties in the same area have sold relatively quickly. But Murphy says buyers can sometimes do well if they're willing to consider such "stale listings."

"About 80% of the time, the only thing wrong with these houses is that they were overpriced at the beginning. Then, even after they're repriced, they have a bad reputation. People think something is seriously wrong with them," Murphy says.

She says buyers who keep an open mind and investigate the cause of a house sitting unsold are often rewarded with a good deal once price cuts occur.

-- Stay clear of a house that needs extensive work.

Abraham Tieh, a past president of the National Association of Exclusive Buyer Agents (naeba.org), tells of a Taiwanese diplomat and his wife, an accountant, who wanted to find a home with a kitchen suitable for entertaining visiting dignitaries. They were in a hurry and compromised on a place they figured on remodeling.

"The diplomat was handy and knew a lot of contractors. But like many homebuyers, he underestimated the amount of time, effort and expense it would take to transform the place to their liking," Tieh says.

Indeed, it took more than two years to complete the elaborate kitchen upgrades the couple wanted, along with the major addition that they planned. By then, the couple had gone through so much stress that their marriage fell apart.

"If at all possible, when moving to your dream house, find a place that's in ready-to-go condition. That way you eliminate the huge hassle factor that comes with remodeling," Tieh says.

-- Anticipate appreciation for your upscale home purchase.

As the housing crisis of 2008 taught many Americans, there’s no guarantee that property values will always escalate. But another lesson that owners have also learned is that when housing recoveries occur, they typically happen first in popular higher-end neighborhoods.

That reality is reassuring to would-be buyers like the Seattle psychiatrists who are attempting a move-up purchase in Redmond to accommodate their growing family in Redmond. Economists offer reassurances to such purchasers.

“The limited supply of high-end homes and their desirable features continue to keep home values ticking higher, even in a more subdued market,” Divounguy says. (To contact Ellen James Martin, email her at ellenjamesmartin@gmail.com.)

Given massive uncertainty about the economy, due to tariffs, stock market volatility and the impact of AI on employment, Fed Chair Jerome Powell admits he’s stumped about how to set monetary policy at such an unparalleled period. Should he raise or lower interest rates or keep them constant?

Meanwhile, many retirees are equally puzzled about how to price their property for sale to attract buyers and capture the best possible offer before they move. In many neighborhoods, pricing a home correctly is problematic, given economic headwinds. Mortgage rates remain high, and more houses are lingering unsold.

Take the case of a soon-to-retire HR manager at Eli Lilly, the pharmaceutical firm based in Indianapolis. Aspiring to move closer to grandchildren, he put his four-bedroom split-level house on the market 47 days ago. After three public open houses fell flat, he took his first major price cut. The question now is if he should agree to another big discount to get his place sold. Selling would allow him to buy in a retirement community in North Carolina, where his family lives.

“My listing agent is as unsure as I am about how to build interest in my place. She admits I live in an attractive area where homes usually sell quickly. But this year is different and aggravatingly so,” the HR manager says.

Economic uncertainty isn’t the only issue currently bothering would-be retirees. Another factor involves mounting competition from other properties. At the national level, inventory is now nearly 30% higher than at the same time last year.

“The number of homes actively for sale remains on a strong upward trajectory,” says Jake Krimmel, a senior economist at Realtor.com, the property listing service.

Here are a few pointers for home sellers nearing retirement:

-- Resist the urge to play pricing games.

In hopes of scoring more money, some retirees reject the initial pricing recommendation of their listing agent. In pursuit of higher proceeds, they try to “test the market” with a higher price than their agent proposed. After all, they reason, they could always cut the price later if necessary.

But this seemingly logical idea usually backfires, because most buyers are now acutely sensitive to housing values. They respond negatively to an overpriced property and may become so annoyed they won’t even visit the place.

“The first two weeks after you list your house are key. If you don’t price it right from the start, possible buyers will lose interest. Then even after you drop the price, you may have to wait a long, long time to get it sold,” says Donna Clark, a broker for the Re/Max realty chain in Reno, Nevada.

-- Stay focused on the goal you wish to achieve.

Retirement dreams vary widely. Though many wish to travel, others have a less expansive vision. Some simply seek to downsize to a much smaller house or a condo where they have fewer upkeep obligations. Others want to live closer to family.

“Obviously, lots of older home sellers seek to escape to a climate more to their liking,” says Eric Tyson, the co-author of “House Selling for Dummies.”

Staying focused on retirement plans should help keep your spirits up as you do the hard work of preparing your property for market. To maintain your focus, Tyson says, you may wish to take a brief vacation to the area where you’d like to live. A less costly approach is to attach a photo of your ideal destination to your computer monitor where you can keep it in mind.

-- Take a tour of model homes in your area.

Have you lived in your current home for many years? If so, you’re likely very comfortable with your interior design and see no need to update it. But that’s usually a mistake, says Clark, who’s sold homes for more than three decades.

One way to picture the sort of decor contemporary buyers prefer is to tour model homes in new subdivisions.

“This is a shortcut to seeing the kinds of colors and designs younger buyers look for. You’ll also see how well a house can look when it’s free of clutter, such as stacks of mail and magazines,” Clark says.

-- List the upgrades that could help you sell well.

Would-be retirees who are eager to sell their properties should view key improvements as a wise investment rather than a needless sacrifice.

“A house is like a business. Sometimes you have to put some money into it to get more money out of it,” Clark says.

Obviously, you’re unlikely to recoup your outlays for major improvements, like putting on an addition or installing a new fireplace. But Clark says several less expensive upgrades could be extremely helpful in promoting the sale of your home.

For instance, she says you’ll want to refinish hardwood floors if they’re beat up. And you’ll want to replace carpeting in an out-of-date color.

“I had some clients with bright teal carpeting in their living room. It was clean and perfectly serviceable. But buyers who looked at the house couldn’t get past all that teal. After the owners replaced it with light taupe carpeting, their house sold right away,” Clark says.

Likewise, she says most sellers with vibrantly colored walls are well advised to repaint them in neutral tones.

“Pink walls don’t belong in any house you’re trying to sell. Nor do walls in deep red, vivid green or periwinkle blue,” Clark says.

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