A Shift Buyers Have Been Waiting For

At Slater Realty Group, we know the past few years have felt frustrating for buyers. Between higher mortgage rates and rising home prices, many people felt priced out or stuck on the sidelines. But there’s finally some encouraging news: buying a home is getting more affordable. Monthly payments have started to ease, and while it’s not suddenly “easy” to buy, the pressure buyers have been feeling is beginning to loosen in a meaningful way.

One of the clearest ways to measure affordability is by looking at how much of a household’s income it takes to own a home. Housing is generally considered affordable when it costs about 30% or less of your monthly income, including your mortgage payment, taxes, insurance, and basic maintenance. For the past several years, that percentage was well above that level, making homeownership feel out of reach for many. Now, we’re slowly moving back toward balance. We’re not fully there yet, but the trend is finally heading in the right direction.

So what’s driving the improvement? First, mortgage rates have eased and are sitting near their lowest levels in more than three years. Even small shifts in rates can make a noticeable difference in monthly payments. Second, home price growth has cooled. Prices aren’t dropping nationally, but they’re no longer climbing at the rapid pace we saw a few years ago. That slower, steadier growth makes payments more predictable and manageable. Third, wages in many areas are rising at a pace that’s helping offset higher home prices. When income grows faster than home values, buying power improves even if rates don’t move dramatically.

None of this makes buying inexpensive overnight. Affordability is still tighter than many buyers would prefer. But for the first time in several years, the forces that hurt affordability are easing instead of intensifying. Instead of everything working against buyers, we’re seeing gradual improvement and many economists expect that progress to continue into 2026.

Some markets are seeing these improvements faster than others. In certain areas, affordability is expected to return to more comfortable levels by the end of the year. But you don’t necessarily have to wait or relocate to benefit. Real estate is local, and in many communities, the numbers already look better than they did just a year ago. That’s why having a conversation about what’s happening specifically in our area matters so much.

Bottom Line

For the first time in a while, affordability is easing and that’s a meaningful shift. It may not feel dramatic, but it’s real. At Slater Realty Group, we’re here to help you understand what these changes look like in our local market and whether now makes sense for you. If you’ve been waiting for the right window, this could be it. Let’s talk through your options and create a plan that works for you.

Source

Coldwell Banker Realty