3 Factors Affecting Home Affordability in 2024

Now that we are halfway into this cold January 2024, you might have noticed some conversations in the media and amongst the people you know regarding home affordability. Specifically, how tight it is. Because of this, I thought that it might be a good time to talk about three key factors affecting home affordability:

1. Mortgage rates. If you are keeping tabs on the mortgage rates lately, you’ll know that they’ve declined a little bit and are expected to fluctuate between the upper fives and low sixes. Economists predict that they will continue to trend downward as long as the economy makes progress on inflation.

2. Home prices. After a significant increase, home prices are expected to stabilize. While prices are not quite as high as they were in the past years, with a low interest rate, modest gross growth can be seen. This is good for both sellers and buyers, especially for those with good credit scores.

3. Wages. Rising incomes are another positive factor when it comes to home affordability. If your income is increasing, it is a good idea to reevaluate your home-buying power with a mortgage specialist. It is also important to be pre-qualified and consider that the old standard rules for affordability may not be applicable to everyone anymore.

Generally, the market will slowly change, so if you are considering buying a home, now is a good time to start looking. It is also a good idea to stay updated about market conditions and trends, as they are continually changing. Whether you are a buyer or a seller, being informed about these three factors is important. 

I can help you understand how these factors can affect your specific situation, and I can also guide you through the process. If you need help navigating the real estate market, feel free to call or email me. I look forward to hearing from you.