How a $280 Drop Is Changing Home Affordability

If you’ve been holding off on buying a home because of high mortgage rates or prices, it may be time to take another look. Affordability is improving in 39 of the top 50 markets, according to First American — marking the fifth consecutive month of progress.

One of the biggest changes is in monthly payments. Data from Redfin shows payments on a median-priced home are now $283 lower than they were just a few months ago. That’s a savings of more than $3,000 per year, and it’s giving buyers across Miami and the Florida Keys renewed confidence to re-enter the market.

Even modest improvements can make a big difference. For example, a buyer with a $3,000 monthly budget can now afford a $468,000 home — about $22,000 more than in June. That added flexibility can open doors to more options, neighborhoods, and opportunities.

What’s behind this shift? Mortgage rates have eased from their highs earlier this year, and home price growth is slowing in many markets. Together, these factors are helping affordability reach its highest level in over two years.

For South Florida buyers, this is welcome news. Markets like Miami, Key Largo, and Islamorada are seeing more balanced conditions, giving buyers a chance to move forward with greater buying power. Realtors with The Selling Properties Group powered by LPT Realty are helping clients make sense of these shifts in real time.