I've been active in the real estate market since 2010.. The last big crash. Since than we have seen prices steadily increase year after year. For the past 5 years home sellers have had the upper hand as they haggled with buyers over price with price( I know this because I am a broker myself). Cash buyers are still flooding into densely populated cities.
I believe the housing market could cool off next year as tax-law changes discourage some buyers even as more homeowners put their homes up for sale for the higher priced range homes. If you don't know the new tax plan by Trump only let you deduct up to $10,000 of the property tax. Especially in Southern and Northern California where home prices are above the $1,000,000. I believe this will discourage a bit the higher priced homes. BUT what this will do is only increase the condo and townhouse values. As more buyers will look to those are purchases.
I just find that with the newer generation, they want simple living. Owning a house is not easy to maintain as anyone who has owned a house. I believe the condo market will keep soaring while houses will cool off a bit.
The shift in bargaining power won't be dramatic. Many sizzling housing markets on the West and East Coasts will continue to see solidly rising prices, economists say. Yet the pace of the run-up will likely slow as a market that has long favored sellers evens out somewhat.
The question is if you are a someone who wants to purchase a house now, do you think you will be buying at the peak as in 2008 or should you wait to let the prices drop. I personally believe the market will dip in 2020. You have to understand that all it takes is some bad news in the market for real estate, and people worry, think twice about buying. Hence less buyers equal home prices dropping. Demand is not as strong anymore, because of fear in the real estate market.
I tell myself this if the unemployment rate goes up, companies start laying off people, who will be paying these high mortgages? I think the housing prices and higher mortgages are pulling people thin with income to mortgage. You will see more foreclosures, short sales, auctions.