I chose the placebo effect for my 5th grade science fair project.  To illustrate, I poured 7UP into a Sprite bottle and had my classmates drink it and answer questions about the flavor. Most believed without question that they were drinking Sprite based on the power of suggestion.  Looking back, it wasn't the best presentation, but my ten year old self thought it was genius.

I just read an article about the nocebo effect that brought me back to my science fair days.  Unlike a placebo, the nocebo effect is when a person experiences a real negative outcome to something as a result of the belief that it will cause harm.  Dr. Sanjay Gupta said, 'With a nocebo effect, if test subjects believe there may be side effects, they often experience them. . .expectations shape reality.'

The nocebo effect is at work in the real estate market right now. National media reports about high interest rates and their softening effect on the market are conditioning homeowners to believe they can't move because home values are dropping and losing their 3% interest rate would be akin to losing a beloved family pet.  This narrative is stifling inventory levels. If  the nocebo effect can produce real negative outcomes, where we get information from matters. These reports aren’t ‘fake news’, but they aren’t reflective of our local market. Locally, buyer demand is strong and prices are up year over year despite rising interest rates.  

Science fair projects aside, trying to time the market based on news reports is a mistake.  This is a fear based reaction and rarely takes your needs as a buyer or seller into account.  The best time to buy or sell is when it makes sense for you. If more people gave thoughtful consideration to their needs and put less weight on perceived market conditions, balance would return to the market. That is a reality I would find refreshing, much like an ice cold Sprite, or is it 7UP?