Why Home Buyers Should Be Paying Attention

There are early signs that this market may be creating opportunities for buyers.

According to the National Association of REALTORS® January report:

• 31% of existing-home sales in January were to first-time buyers ; up from 28% a year ago.

• Housing affordability is at its best level since March 2022, based on NAR’s Housing Affordability Index.

• The 30-year fixed mortgage rate averaged 6.10% in January, down from nearly 7% a year ago.

What does that mean in real numbers?

For a $400,000 home with 10% down:

• At 7%, the payment would be about $2,419/month

• At 6.10%, the payment drops to about $2,185/month

• That’s a savings of roughly $234 per month

Additionally:

• Home price growth has slowed significantly ; up just 0.9% year-over-year

• Distressed sales remain historically low at just 2% of total sales

While prices continue to rise nationally, the pace has moderated, and affordability conditions are improving due to wage growth and slightly lower mortgage rates.

For buyers who have been waiting, this may be a moment worth evaluating carefully.

(Source: NAR January Market Report)