For the first time in four years, home affordability has improved in a meaningful way.

After a stretch of rising home prices and higher mortgage rates, the numbers are finally starting to shift in buyers’ favor. While the market isn’t suddenly “cheap,” conditions are more balanced than they’ve been in quite some time.

What’s Driving the Improvement?

Three key factors are working together:

1. Lower Mortgage Rates

Compared to recent peaks, rates have eased, giving buyers a little more breathing room in their monthly payment.

2. Slower Home Price Growth

Home prices are still rising in many markets, but at a much more moderate pace. That slower growth helps stabilize affordability.

3. Rising Wages

Incomes have continued to increase, which improves buyers’ purchasing power over time.

When you combine these three trends, the result is better affordability than we’ve seen in four years.

What This Means for Buyers

Affordability challenges haven’t disappeared. But for many buyers, the math looks noticeably better than it did last year.

If you paused your plans in 2025 because payments didn’t make sense, this may be the time to revisit your options. Even a small shift in rates or price can make a meaningful difference in your monthly cost.

The only way to know for sure? Re-run the numbers.

If you’ve been waiting for the right window, this could be your sign to take another look. Reach out, and let’s see how today’s market conditions impact your buying power and what’s possible for your next move.