The real estate market has been anything but predictable these last few years. Since the 2007 recession, home prices have dropped, sometimes precipitously, which has scared off many homebuyers. Five years later, home prices have been steadily recovering, but there are still concerns about what will happen next in the real estate market. What's most important to understand is that each local market is different, dependant on many unique factors that correspond to these individual areas. To differentiate between different markets, see the difference between Hot, Normal and Cold Markets