Homes Might Get Cheaper, But Not for Everyone

For the first time since the Great Recession, incomes might grow faster than home prices. This change could make buying a home a bit easier for some people.

Key Predictions:

• Mortgage rates are predicted to drop slightly.
• Home prices might not rise as much as they have been.

However, this doesn't mean everyone will find it easy to buy a home.

Challenges Ahead:

• Many young adults and families might still choose to live with relatives or roommates instead of buying their own place.
• Homeownership rates for Gen Z and millennials have not improved much:
• Only about 25% of Gen Zers own their homes.
• Just over half of millennials do.
• High home prices, mortgage rates, and other costs like insurance and utilities make it hard for many to afford a home, even if incomes are growing.

Expert Insights:

• Affordability is about more than just the price of a home. It's also about:
• Mortgage rates
• Property taxes
• Other living costs
• Even if incomes grow, these other costs might not go down, meaning many people might not feel much relief when it comes to buying a home.

Market Movement:

• The housing market is starting to move again after being frozen for a while.
• Prices aren't rising as fast as they were, but they're not falling either.
• This could mean that more people might start buying and selling homes again.
• However, it might still be a long time before the housing market is truly affordable for first-time buyers and young families.