A recent survey from Bank of America asked potential homebuyers what would give them more confidence in making a move, and the answers centered around a familiar theme: improved affordability. Specifically, buyers are hoping for relief in both home prices and interest rates.

Here’s the good news — while broader economic conditions still feel uncertain, encouraging signs are emerging within the housing market. Let’s take a closer look at the shifts that might just make your homeownership goals more attainable.

Home Prices Are Stabilizing

Over the past few years, home prices surged rapidly — sometimes leaving buyers feeling like they were priced out entirely. From 2020 to 2021 alone, prices jumped a staggering 20% in just 12 months. But things are changing. Today, national forecasts suggest home prices will rise at a more moderate, single-digit pace in 2024 — a return to more typical growth patterns.

This is a welcome shift for buyers. Slower price increases give you the ability to plan your budget more effectively and reduce the stress of rushing into a purchase before prices spike again. While market conditions will still vary by region — with some areas seeing continued gains and others experiencing slight pullbacks — the overall trend is one of stabilization.

That’s great news for buyers looking to make a smart, well-timed decision.

Mortgage Rates Are Becoming More Manageable

Another major factor improving housing affordability is the recent decline in mortgage rates. After reaching highs that made monthly payments difficult for many, rates have eased slightly. That shift is taking some of the pressure off and is helping more buyers re-enter the market.

As Lisa Sturtevant, Chief Economist at Bright MLS, explains:

“Slower price growth coupled with a slight drop in mortgage rates will improve affordability and create a window for some buyers to get into the market.”

Even modest rate drops can lead to significant monthly savings. Though rates may still fluctuate in the short-term, the overall expectation is that they’ll remain in the low to mid-6% range throughout the year — a notable improvement from recent peaks. And if the broader economy continues on a stable path, we could even see rates dip further.

Why It Matters Now

While some uncertainty remains in the economy, the housing market is clearly beginning to adjust — and that matters. With home prices growing at a more manageable pace and mortgage rates easing, the conditions for buyers are becoming more favorable.

These changes may not completely eliminate affordability challenges overnight, but they do offer a more encouraging landscape compared to earlier this year. If you’ve been waiting on the sidelines, now could be a good time to reassess your options and explore what’s possible in today’s market.

Bottom Line

The top two concerns for buyers — prices and rates — are both seeing positive momentum. Home prices are moderating, and interest rates are gradually coming down. These trends could continue into 2025, offering new opportunities for hopeful homebuyers.

Thinking about making a move? Reach out to Mike Panza and the team at Panza Home Group for expert guidance tailored to your local market. They're here to help you navigate your next steps with confidence.

For more information or to get in touch, visit: https://panzarealestate.com/team/mike-panza