If you’ve been sitting on the sidelines, waiting for the right moment to jump into the housing market, the time may be now. Affordability is shifting positively, thanks to three key factors: mortgage rates, home prices, and wages. So, what’s happening with these factors, and why should you reconsider starting (or restarting) your home search?
Let’s break it down.
1. Mortgage Rates Are Coming Down
Mortgage rates have been on a rollercoaster ride, making it tough for potential buyers to know when to dive in. But here’s some good news: rates are finally trending downward. Lower rates mean more affordable monthly payments, which can greatly affect how much home you can afford. If high interest rates were holding you back, now might be the moment to check in on the available rates.
2. Home Prices Are Leveling Off
For a while, it felt like home prices were skyrocketing without any sign of stopping. But we’re seeing prices level off, giving buyers more breathing room. A market with stabilizing prices could allow you to find a home without feeling like you’re in a bidding war whenever you make an offer.
3. Wages Are Climbing
This is the cherry on top! As wages continue to rise, they are helping offset some of the costs associated with home buying. With more income in your pocket, your ability to afford a mortgage is improving. When wages rise alongside falling mortgage rates and stable home prices, it’s a recipe for better home affordability.
So, Is It Time to Jump Back In?
It might be time to reconsider if you paused your home search because it felt like prices were just too high or mortgage rates were too steep. With the perfect storm of lower rates, steady prices, and higher wages, this could be your chance to find something in your budget that checks all your boxes.
Of course, every situation is different, and it’s important to assess your finances and long-term goals. But if you’ve been thinking about homeownership or returning to the market, these factors are working in your favor.
Ready to Talk?
If you’re feeling a little more optimistic about buying a home, let’s talk! We can explore what options are available, check out current listings, and see if the time is right for you to take the plunge. Affordability is on the upswing—why not take advantage of it?
