Affordability Index Explains Why Now Could Be the Best Time to Buy a Home

By Vicki Schamel

Has been a dedicated Realtor for over 30 years. She first entered real estate to balance work and raising her two young daughters, but it soon grew into a lifelong passion.

Are you thinking about buying or selling a home in 2025? I’ve been looking over the latest market numbers, and I wanted to share interesting trends happening in our local market as we move into the second quarter of 2025. While home prices are up, the truth is homes are actually more affordable.

Our affordability index is 185. This number shows how affordable homes are compared to local incomes. A score of 100 means average homes are within reach of average earners. An affordability index of 185 means they’re well within reach.

So yes, prices are rising—but incomes here are keeping up. That gives local buyers more purchasing power than people in many other parts of the country. When people say “homes aren’t affordable anymore,” that might be true in some places. But it’s not true here, not right now.

Inventory is rising. More homes are hitting the market now than there were a few months ago. That’s great news for buyers because they’ll have more options, but it’s also a good sign for sellers because it shows buyers are still active and ready to make offers.

Home prices are up 4% to 6%. Right now, the median home sale price in our area is around $159,450, or about $160,000. If you already own a home, that’s a healthy bump in value. While the fast increase in home prices might worry homebuyers, don’t be discouraged from entering the market just yet.

If you’re buying, this could be your moment to act while the numbers still work in your favor. If you’re selling, you’re likely sitting on more equity, and plenty of qualified buyers are still in the market.

Unsure of how much home you can afford or how to get started? Reach out to me at (607) 795-2904 or vickischamel@kw.com with any questions. I’d be happy to talk it through with you.