Homebuyers are finally catching a break in certain parts of the U.S., as housing affordability improves in six metro areas where wages are rising and home prices are stabilizing or even falling. According to a recent report from real estate brokerage Redfin, these cities — including Phoenix, Austin, and Las Vegas — are seeing a boost in buyer purchasing power thanks to slowing home price growth and slight declines in mortgage rates. In some of these markets, buyers can afford up to 10% more home than a year ago, creating an opening for previously priced-out shoppers.
The affordability gains are particularly significant in cities that saw massive price growth during the pandemic, followed by recent cooling. For example, in Phoenix, the median home price has dipped while wages have increased, offering home seekers a better shot at ownership. Although affordability remains a challenge nationwide, these promising shifts suggest that buyers in select cities may find a more favorable landscape heading into mid-2024.
Read more about Arizona home prices.