Will Homebuying Become More Affordable in the Next 6 Months to a Year?

It’s the question on everyone’s mind: will buying a home finally get easier—and more affordable—over the next six to twelve months? If you’ve been watching prices climb and interest rates fluctuate, you’re not alone in hoping for a break. Let’s take a closer look at what’s happening in the market and what you might expect in the near future.

Where We Are Now

Over the past couple of years, home prices across North America have soared, driven by low inventory, high demand, and rising costs for everything from lumber to labor. Mortgage rates have also been on a rollercoaster, adding another layer of uncertainty for buyers.

What Could Make Homes More Affordable?

• Interest Rate Drops: If inflation cools and the Federal Reserve lowers rates, monthly mortgage payments could become more manageable, even if home prices stay high.
• Increased Inventory: More homes on the market would give buyers more choices—and more negotiating power—which could slow price growth or even lead to modest price drops in some areas.
• Stabilizing Prices: Some experts predict that price increases will slow down, or even flatten, as the market finds its new balance.

Challenges That Could Keep Homes Out of Reach

• Low Supply: If new listings remain scarce and builders can’t keep up, prices may stay stubbornly high.
• Sticky Mortgage Rates: If rates don’t drop as hoped, buyers may find it harder to afford monthly payments, even if prices stabilize.
• Economic Uncertainty: Job market shifts or unexpected economic bumps could make buyers—and lenders—more cautious.

What Can Buyers Do?

• Get Pre-Approved: Knowing your budget and having financing in place gives you a leg up if the right home comes along. Get Pre Approved
• Stay Flexible: Consider expanding your search area or property type to find more affordable options.
• Watch the Market: Stay in touch with your agent and keep an eye on local trends—opportunities can pop up quickly! https://thepkbowman.com

The Bottom Line

While there are some signs that homebuying could become a bit more affordable in the next 6 to 12 months—especially if rates drop or inventory rises—it’s unlikely we’ll see dramatic changes overnight. But staying informed, flexible, and ready to act can help you make the most of whatever the market brings. Your dream home might be closer than you think! 🏡