<p>Households’ preferences, market perception and future expectations play a crucial role in shaping housing market dynamics. We conduct a survey in a period of rising inflation, high interest rates and large increases in real estate prices to study how these factors influence homebuying sentiment and decision-making. Our findings indicate that households do not exhibit systematic underreaction or overreaction to price changes. However, they hold strong expectations about future price trends, perceiving relatively low risk in the market. Notably, their short-term expectations are shaped by individual characteristics and current market sentiment, while long-term expectations remain closely aligned with actual market dynamics. Moreover, the study provides some evidence that in transition economies, homebuyers are not primarily driven by speculation or investment motives. These insights contribute to a deeper understanding of household behaviour in evolving housing markets, offering valuable implications for policymakers and market analysts.</p>