For the past few years, affordability has been the biggest thing holding buyers back. It may have held you back, too.
At some point, you probably ran the numbers, saw the monthly payment, and decided to hit pause and wait for things to improve. But here’s something you might have missed while you’ve been on the sidelines.
Over the past year, housing affordability has improved in all 50 states. Yep, you read that right. It’s gotten better everywhere.
That’s based on new research from First American. And while housing is still fairly expensive compared to historical standards, the pressure buyers have felt over the past few years is finally starting to ease.
Some Areas Are Seeing Bigger Improvements
The first thing you need to know is this isn’t just happening in one region or a small group of cities. It’s happening almost everywhere.
Sure, individual states, cities, and even neighborhoods will still vary, sometimes quite a bit. But overall, more buyers are able to get back into the market. And in 48 of the top 50 metro areas, affordability has improved over the past year.
That same research details which cities are seeing the biggest gains.
Just in case you’re wondering why these areas, it’s simple. In many cases, it comes down to the number of homes for sale.
When buyers have more choices, it helps create a healthier balance in the market, and that can make homes more affordable again. With more homes available, buyers also have more room to negotiate with sellers for things like credits, price reductions, and other incentives. It also gives you a better chance of finding a home that fits both your needs and your budget.
It could make more of a difference than you think.
None of this means affordability challenges have completely gone away. Buying a home is still a major financial decision. But the trend is moving in a direction many buyers have been hoping for.
As Chen Zhao, Head of Economic Research at Redfin, explains:
““The housing affordability crisis is showing signs of easing . . . opening the door for more Americans to make the jump to homeownership.”
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Bottom Line
If you’ve been holding off on buying, this could be the signal you’ve been waiting for. And if you want to see how much affordability has improved in our area, let’s connect.
