Homebuyers in several U.S. cities are seeing a boost in purchasing power, thanks to recent declines in mortgage rates and home prices stabilizing in some markets. According to new data, cities such as Phoenix, Las Vegas, and Austin are experiencing conditions where price drops and wage growth have made homes slightly more affordable. For example, in Phoenix, the average home price has dipped by nearly 6% year-over-year, allowing buyers to afford larger homes or reduce their monthly payments.
The combination of easing inflation and a cooling real estate market is contributing to the shift. Some buyers who were previously priced out during the pandemic housing boom are now finding they have more options. Other cities benefiting from these trends include San Antonio, Salt Lake City, and Sacramento, which are also seeing improvements in affordability relative to 2023.
Read more about Arizona home prices.