How Buyers are Adapting in Today’s Housing Market 

For the first time since 2020, housing affordability is showing signs of improvement. This is mainly due to a drop in mortgage rates, which have eased from 7.07% to 6.09% over the past year. However, despite this positive shift, affordability continues to be a hurdle for many buyers. 

Currently, buyers need to earn around $115,000 annually to comfortably afford a median-priced home. Yet, the average household income is about $84,000—roughly 27% less than what's needed. As a result, many buyers are making adjustments and prioritizing what’s most important. This doesn’t mean giving up on homeownership, but rather making thoughtful compromises to secure a home that meets their needs. 

Let’s explore the top adjustments buyers are making in 2024 and how to navigate them successfully: 

The Top Compromises Buyers Are Making 

A recent survey conducted by Homes.com and Apartment Therapy explored "The State of Home Buying." It reveals that buyers and real estate professionals are finding creative ways to enter the market. Here’s what they’re doing: 

1. Condos and Townhomes Are Gaining Popularity

With single-family homes becoming pricier, more buyers are exploring condos and townhomes. About 17% of those with budgets under $500,000 are focusing on condos or apartments, and 15% are considering townhomes. 

These property types often offer affordability and the convenience of low-maintenance living, sometimes with added perks like gyms and pools. Just remember to account for HOA fees in your overall budget. 

2. Being Flexible on Location

Location remains a top priority, but rising prices are pushing buyers to expand their search. About 21% of buyers are purchasing outside their ideal neighborhood, and many more are considering it. 

Expanding your search radius by even a few miles can make a big difference. It might open up more options that still meet your key needs—and could even lead to finding a hidden gem! 

How to Make Smart Compromises Without Regret 

Buying a home always involves some trade-offs, but there’s a big difference between compromising and settling. Here’s how to stay focused on what truly matters: 

• Focus on What You Can’t Change 
  Look past cosmetic details—paint, fixtures, and flooring can be updated later. Instead, focus on the home’s layout, structure, and location. 

• Plan for Your Future Needs 
  Think five to ten years ahead. If you’re planning to expand your family or need a home office, keep that in mind during your search. 

• Stick to Your Budget 
  Stretching your budget can lead to long-term stress. Be sure to account for all costs, including property taxes, insurance, and HOA fees, to secure your financial future. 

By focusing on your priorities and staying flexible on less critical features, you can still make a smart and fulfilling purchase. Working with an experienced professional ensures you have the guidance to navigate these decisions confidently. 

 If you’re thinking about buying or exploring your options, I’d love to help you find a home that’s the perfect fit for both your life and your budget! 

Interested in learning more? Reach out by phone or email for a discovery session.