Marco Island Real Estate and Homes for Sale

While Marco Island is popular with retirees, it’s also a popular place for families and tourists to see and explore. It may be an island, but it’s not exactly isolated from the rest of Florida, either. Real estate in Marco Island, FL offers some unique advantages, but it’s also close enough to enjoy the many other sites and attractions of the region, some of which, however, you may want to hop in a boat to visit. At other times, Marco Island residents simply hop on their bicycle and head out across the island. When you invest in real estate in Marco Island, FL you’re in for some exciting choices, plus the enjoyment of an entertaining island lifestyle.

Many of the homes for sale in Marco Island, Florida are designed more for living a resort-like lifestyle than simply living in a traditional home. Unlike some other homes you’ll find in other areas of the country, buyers should come to Marco expecting to find things like abundant outdoor space, some homes with private boat docks, and still some homes for sale in Marco Island, Florida with even private guest quarters. It seems a large number of the homes of Marco Island are built to take advantage of private amenities, too, such as summer kitchens, swimming pools, outdoor lanais and spas.

While some homes in Marco Island sit right on the water, others offer water views. If you’re interested in living close to the beach, plus close to area restaurants and shops on the island, you’re sure to find some great homes for sale in Marco Island, Florida to consider. The homes come in a variety of styles and price points to fit different budgets, with homes designed around a number of different lifestyle needs and desires, as well.

Marco Island Waterfront Homes for Sale

You can also find some lovely waterfront homes for sale in Marco Island, Florida that sit alongside quiet streets with private boat docks and Gulf access. Even the more established homes on Marco Island are oftentimes nicely updated with some of the latest features and finishes. If you’re searching for a property with direct access to the Marco River, you’ll find that with some of the homes for sale on Marco Island, as well. Deeded boat docks with a lift are just part of the appeal for those interested in living out a true boating lifestyle.

Other waterfront homes for sale in Marco Island, Florida come with generous floor plans, some of which are newer, custom designs. Depending on your budget, you’ll find a number of waterfront homes for sale in Marco Island, Florida to choose from, some of which come with other upgrades, throughout, too. Not only are the homes impressive in their own right, but they also offer the advantage of sitting in one of Florida’s most exceptional locations for homebuyers.

If you’d rather not have to deal with the upkeep of a single-family home on Marco Island, there are also some great options that appeal to a low-maintenance lifestyle. Some of the condos for sale in Marco Island, Florida are definitely a more affordable option for prospective buyers, as well. This creates the opportunity for an even larger number of residential styles for buyers to consider. Some of these condos come with things like private wraparound balconies, making it easy to watch the sun go down over the Gulf at the end of the day without even leaving home. Other condos for sale in Marco Island, Florida are more recently updated with such desirable features and finishes as granite countertops and updated flooring.

New Construction Waterfront Homes Marco Island

Still, other condos for sale in Marco Island, Florida take advantage of the location by sitting close to the sand and the water. Whether you’re searching for a mid-rise property close to boating, fishing and other amenities, or an updated condo with all of the latest features and finishes, you’ll find plenty of different options to consider when it comes to condos for sale in Marco Island, Florida. Condos, single-family homes and waterfront properties are all plentiful on Marco Island, and the hardest part may just be deciding which of the fantastic properties to make your own. For the true enjoyment of an island lifestyle, consider taking your home, condo or property search to the magical location of Marco Island, Florida.

Why a Foreclosure Wave Isn’t on the Horizon

Even though data shows inflation is cooling, a lot of people are still feeling the pinch on their wallets. And those high costs on everything from gas to groceries are fueling unnecessary concerns that more people are going to have trouble making their mortgage payments. But, does that mean there’s a big wave of foreclosures coming?

Here's a look at why the data and the experts say that’s not going to happen.

There Aren’t Many Homeowners Who Are Seriously Behind on Their Mortgages

One of the main reasons there were so many foreclosures during the last housing crash was because relaxed lending standards made it easy for people to take out mortgages, even when they couldn’t show they’d be able to pay them back. At that time, lenders weren’t being as strict when looking at applicant credit scores, income levels, employment status, and debt-to-income ratio.

But since then, lending standards have gotten a whole lot tighter. Lenders became much more diligent when assessing applicants for home loans. And that means we’re seeing more qualified buyers who have less of a risk of defaulting on their loans.

That’s why data from Freddie Mac and Fannie Mae shows the number of homeowners who are seriously behind on their mortgage payments (known in the industry as delinquencies) has been declining for quite some time. Take a look at the graph below:  

What this means is that, not only are borrowers more qualified, but they’re also finding ways to navigate through their challenges, exploring their repayment options, or maybe even using the record amount of equity they have to sell and avoid foreclosure entirely.

The Answer Is: There’s No Sign of a Wave Coming

Before there can be a significant rise in foreclosures, the number of people who can’t make their mortgage payments would need to rise significantly. But, since so many buyers are making their payments today and homeowners have so much equity built up, a wave of foreclosures isn’t likely.

Take it from Bill McBride of Calculated Risk – an expert on the housing market who, after closely following the data and market leading up to the crash, was able to see the foreclosure crisis coming in 2008. McBride says:

“We will NOT see a surge in foreclosures that would significantly impact house prices (as happened following the housing bubble) for two key reasons: 1) mortgage lending has been solid, and 2) most homeowners have substantial equity in their homes.”

Bottom Line

If you’re worried about a potential foreclosure crisis, know there’s nothing in the data to suggest that’ll happen. Buyers are more qualified now, and that’s one reason why they’re not falling seriously behind on their mortgage payments. Scott Meadows - FloridaCustomHomes.com - 239.220.1157

Mortgage Rates Down a Full Percent from Recent High

Mortgage rates have been one of the hottest topics in the housing market lately because of their impact on affordability. And if you’re someone who’s looking to make a move, you’ve probably been waiting eagerly for rates to come down for that very reason. Well, if the past few weeks are any indication, you may be getting your wish.

Mortgage Rates Trend Down in Recent Weeks

There’s big news for mortgage rates. After the latest reports on the economy, inflation, the unemployment rate, and the Federal Reserve’s recent comments, mortgage rates started dropping a bit. And according to Freddie Mac, they’re now at a level we haven’t seen since February. To help show the downward trend, check out the graph below:

Maybe you’re seeing this and wondering if you should ride the wave and see how low they’ll go. If that’s the case, here’s some important perspective. Remember, the record-low rates from the pandemic are a thing of the past. If you’re holding out hope to see a 3% mortgage rate again, you’re waiting for something experts agree won’t happen. As Greg McBride, Chief Financial Analyst at Bankrate, says: 

“The hopes for lower interest rates need the reality check that 'lower' doesn't mean we're going back to 3% mortgage rates. . . the best we may be able to hope for over the next year is 5.5 to 6%.”

And with the decrease in recent weeks, you’ve got a big opportunity in front of you right now. It may be enough for you to want to jump back in. 

The Relationship Between Rates and Demand 

If you wait for mortgage rates to drop further, you might find yourself dealing with more competition as other buyers re-ignite their home searches too.

In the housing market, there’s generally a relationship between mortgage rates and buyer demand. Typically, the higher rates are, the lower buyer demand is. But when rates start to come down, things change. Buyers who were on the fence over higher rates will resume their searches. Here’s what that means for you. As a recent article from Bankrate says:

“If you’re ready to buy, now might be the time to strike. Home prices have been rising primarily because of a longstanding shortage of homes for sale. That’s unlikely to change, and if mortgage rates do fall below 6%, it’s possible buyers would enter the market en masse, further pushing up prices and resurrecting bidding wars.”

Bottom Line

If you’ve been waiting to make your move, the recent downward trend in mortgage rates may be enough to get you off the sidelines. Rates have hit their lowest point in months, and that gives you the opportunity to jump back in before all the other buyers do too.

If you’re ready and able to start the process, reach out and let’s get started.

The Real Story Behind What’s Happening with Home Prices

If you’re wondering what’s going on with home prices lately, you’re definitely not the only one. With so much information out there, it can be hard to figure out your next move.

As a buyer, you might be worried about paying more than you should. And if you're thinking of selling, you might be concerned about not getting the price you're aiming for. 

So, here's a quick breakdown to help clear things up and show you what’s really happening with prices—whether you're thinking about buying or selling. 

Home Price Growth Is Slowing, but Prices Aren’t Falling Nationally

Throughout the country, home price appreciation is moderating. What that means is, prices are still going up, but they're not rising as quickly as they were in recent years. The graph below uses data from Case-Shiller to make the shift from 2023 to 2024 clear:

But rest assured, this doesn't mean home prices are falling. In fact, all the bars in this graph show price growth. So, while you might hear talk of prices cooling, what that really means is they're not climbing as fast as they were when they skyrocketed just a few years ago.

What’s Next for Home Prices? It’s All About Supply and Demand 

You might be curious where prices will go from here. The answer depends on supply and demand, and it’s going to vary by local market.

Nationally, the number of homes for sale is going up, but there still aren’t enough of them to meet today’s buyer demand. That’s keeping upward pressure on prices – even though recent inventory growth has caused that home price appreciation to slow. Danielle Hale, Chief Economist at Realtor.com, said:

“. . . today’s low but quickly improving for-sale inventory has ushered in more market balance than would otherwise be expected . . . This should help home prices maintain a slower pace of growth.” 

And here’s one other thing you may not have considered that could play a role in where prices go from here. Since experts say mortgage rates should continue to decline, it’s likely more buyers will re-enter the market in the months ahead. If demand picks back up, that could make prices climb a bit further.

Why You Should Work with a Local Real Estate Agent 

While national trends give a big-picture view, real estate is always local – especially when it comes to prices. What's happening in your neighborhood might be different from the national average based on what supply and demand look like in your market. That’s why it's crucial to get local insights from a knowledgeable real estate agent.

 As your go-to source for everything related to home prices, a local agent can provide the most current data and trends specific to your area.

So, if you’re planning to sell, they can help you price your house accurately. And when you’re ready to buy, they can find the right home that fits your budget and your needs.

Bottom Line

Home prices are still rising, just not as quickly as before. Whether you’re thinking about buying, selling, or just curious about what your house is worth, let’s connect so you have the personalized guidance you need.

Why Pre-Approval Should Be at the Top of Your Homebuying To-Do List

Since the supply of homes for sale is growing and mortgage rates are coming down, you may be thinking it’s finally your moment to jump into the market. To make sure you’re ready, you need to get pre-approved for a mortgage.

That’s when a lender looks at your finances, including things like your W-2, tax returns, credit score, and bank statements, to figure out what they’re willing to loan you. After that process, you’ll get a pre-approval letter to show what you can borrow. Here are two reasons why this is essential in today’s market.

Pre-Approval Helps You Know Your Numbers

While home affordability is finally starting to show signs of improving, it’s still tight. So, it’s a good idea to talk to a lender about your loan options and how today’s changing mortgage rates will impact your monthly payment. The pre-approval process is the perfect time for that. In addition to determining the maximum amount you can borrow, pre-approval also helps you understand this piece of the puzzle. As Investopedia says:

“Consulting with a lender and obtaining a pre-approval letter allows you to discuss loan options and budgeting with the lender; this step can clarify your total house-hunting budget and the monthly mortgage payment you can afford.”

You should use this information to tailor your home search to what you’re actually comfortable with budget-wise. Since mortgage rates have inched down some lately, you may find you’re able to afford a bit more than you’d expect for your monthly payment, but you still want to avoid overextending. As CNET explains:

“In many cases, a lender may preapprove you for more than you need to spend on a home. And while it can be tempting to look at houses outside your budget, it won’t help you in the long run. Before you start touring homes, figure out how much you can realistically afford and stick to your budget.”

Pre-Approval Makes Your Offer More Appealing

And once you do find a home you want in your budget, pre-approval has another big perk. It not only makes your offer stronger, it also shows sellers you’ve already undergone a credit and financial check. When a seller sees you as a serious buyer, they may be more attracted to your offer because it seems more likely to go through. As Greg McBride, Chief Financial Analyst at Bankrate, says:

“Preapproval carries more weight because it means lenders have actually done more than a cursory review of your credit and your finances, but have instead reviewed your pay stubs, tax returns and bank statements. A preapproval means you’ve cleared the hurdles necessary to be approved for a mortgage up to a certain dollar amount.”

As mortgage rates trend down, more buyers are going to be ready to jump back into the market. And while demand is still limited right now, there’s the potential for competition to pick back up, especially in hot markets. So, why not stack the deck in your favor and make sure you’re putting yourself in the best position possible when you find a home you love?

Bottom Line

If you’re planning on buying a home, don’t forget to get pre-approved early in the process. It can help you get a more in-depth understanding of what you can borrow and shows sellers you mean business.

New Cape Coral Waterfront Homes for Sale

New Cape Coral Waterfront Home Video

Cape Coral New Construction Waterfront Homes 

With its hundreds of miles of canals, its affordable neighborhoods and its easy access to outdoor fun and recreation, Cape Coral is one of the best places to search for a home right now, as there are several new communities offering new construction homes in Cape Coral. This growing city has the distinct advantage of plenty of opportunities for new construction, as development has really taken off in recent years, and new homes and available properties are continually hitting the market. The city has grown substantially over the past few decades, and continues to do so today, with plenty of new options available in terms of new homes for sale in Cape Coral. In just the past 20 years or so the population of Cape Coral has nearly doubled, and new development in Cape Coral shows no signs of slowing down anytime soon. 

Brand new homes can be found in communities all across Cape Coral, with some of the latest development coming to Northwest Cape Coral, where buyers are able to find new waterfront homes, many of which offer the advantage of Gulf access. Thanks to all the canals in this part of Florida, finding a waterfront home in Cape Coral is relatively easy, plus Cape Coral new construction homes are also extremely prevalent, as builders continue to construct new homes in one of the nation’s fastest growing cities. 

It certainly helps that a Cape Coral lifestyle is financially viable for many buyers. Despite some of the higher prices you might find in other large Florida cities or even in large cities in other parts of the US, Cape Coral has remained relatively more affordable and more attainable for many buyers. The cost of living is lower here, yet new homes for sale in Cape Coral are continuing to hit the market, as more and more buyers seek their own new properties and new homes to call their own in this part of the state. 

2024 Inventory rebounds, more waterfront homes to choose from

Depending on your individual needs and your budget, you may likely find that you’re able to get more for your money in Cape Coral, even if you’re interested in a new construction home. On the higher end of the scale, there are some new construction homes in Cape Coral that are on the market and priced in the multi-million-dollar range. Some of these homes easily surpass 3,000 or even 4,000 square feet of living space, and often contain four- or more bedrooms and baths. Some of these homes also offer the advantage of water views, as they include private outdoor space with swimming pools and outdoor living space overlooking your own private boat dock.

You’ll commonly find that new construction homes in Cape Coral come in a variety of different styles, sizes, and price points, some of which are modern and contemporary-style homes that are located in some of Cape Coral’s best new neighborhoods and communities. Living in a new construction home right on a canal is certainly an advantage for many homebuyers, especially if you want to enjoy all that Florida has to offer, both on and off the water. Other new construction homes in Cape Coral are priced even lower, sometimes in the low $1 million range. For this price point, you can still often find a three-bedroom, or sometimes even a four- or five-bedroom layout.

Finally a robust selection of Cape Coral Waterfront Homes

Not every buyer in Florida has that kind of budget either for a new construction home, and that’s one of the things that makes Cape Coral unique when comparing it to other locations. In Cape Coral, you’ll find that plenty of new construction homes on the market right now are priced well below $1 million, including several that contain three-bedrooms, three-baths, and around 2,000 square feet of living space. There are a number of new homes priced in the $500,000 range too, which sometimes are also new waterfront homes in the City of Cape Coral. Not to be overlooked either are some even more affordable new construction homes in Cape Coral, as there are several new homes that have hit the market recently that are priced in the $300,000s. These homes offer the advantage of new construction, yet they also work well for those trying to stay within budget but not willing to give up on the dream of owning a single-family home in Southwest Florida. 

There are obviously so many reasons that new home buyers are drawn to Cape Coral, especially those who come in search of Cape Coral new construction homes. Apart from simply owning a new home in a growing part of Florida, Cape Coral also provides easy access to countless local amenities and conveniences. There are a number of area parks to explore in Cape Coral, plus there are also some area museums and cultural institutions to visit. The long-standing Cape Coral Art Festival & Market Place comes to the city each January, where you can view artwork from hundreds of artisans and craftsmen. It’s one of the county’s largest events, and commonly draws in well more than 100,000 people. 

Living in Cape Coral also means easy access to the golf course, including the 18-hole, Coral Oaks Golf Course, and the 27-holes of golf at Cape Royal Golf Club. You probably won’t have to venture far, because there are dozens upon dozens of golf courses within a short drive when you purchase a new home in Cape Coral. If you’d rather spend time out on the water, you can easily do that too when you purchase a new home in Cape Coral. There are also, though, many homes in Cape Coral that offer not only water access, but Gulf access. Because some of these are new construction, it opens up the opportunity for buyers to find a well-built home with some of the latest features and finishes, without sacrificing a prime location.

Unlike some other communities that rely on teardowns for new construction in a preferred location, Cape Coral new construction homes are still going up at a rapid pace. This means buyers interested in a new home in this part of the State of Florida have a lot of opportunities. It’s no secret that new construction is booming in Cape Coral, and homebuyers are able to take advantage of living in an attractive part of Florida, oftentimes at a more attractive price point.

 Cape Coral Waterfront Homes for Sale

How the Federal Reserve’s Next Move Could Impact the Housing Market

Now that it’s September, all eyes are on the Federal Reserve (the Fed). The overwhelming expectation is that they’ll cut the Federal Funds Rate at their upcoming meeting, driven primarily by recent signs that inflation is cooling, and the job market is slowing down. Mark Zandi, Chief Economist at Moody’s Analytics, said:

“They’re ready to cut, just as long as we don’t get an inflation surprise between now and September, which we won’t.”

But what does this mean for the housing market, and more importantly, for you as a potential homebuyer or seller?

Why a Federal Funds Rate Cut Matters

The Federal Funds Rate is one of the key factors that influences mortgage rates – things like the economy, geopolitical uncertainty, and more also have an impact.

When the Fed cuts the Federal Funds Rate, it signals what’s happening in the broader economy, and mortgage rates tend to respond. While a single rate cut might not lead to a dramatic drop in mortgage rates, it could contribute to the gradual decline that’s already happening.

As Mike Fratantoni, Chief Economist at the Mortgage Bankers Association (MBA), points out:

“Once the Fed kicks off a rate-cutting cycle, we do expect that mortgage rates will move somewhat lower.”

And any upcoming Federal Funds Rate cut likely won’t be a one-time event. Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), says:

“Generally, the rate-cutting cycle is not one-and-done. Six to eight rounds of rate cuts all through 2025 look likely.”

The Projected Impact on Mortgage Rates

Here’s what experts in the industry project for mortgage rates through 2025. One contributing factor to this ongoing gradual decline is the anticipated cuts from the Fed. The graph below shows the latest forecasts from Fannie Mae, MBA, NAR, and Wells Fargo (see graph below):

So, with recent improvements in inflation and signs of a cooling job market, a Federal Funds Rate cut is likely to lead to a moderate decline in mortgage rates (shown in the dotted lines). Here are two big reasons why that’s good news for both buyers and sellers:

1. It Helps Alleviate the Lock-In Effect

For current homeowners, lower mortgage rates could help ease the lock-in effect. That’s where people feel stuck within their current home because today’s rates are higher than what they locked in when they bought their current house.

If the fear of losing your low-rate mortgage and facing higher costs has kept you out of the market, a slight reduction in rates could make selling a bit more attractive again. However, this isn’t expected to bring a flood of sellers to the market, as many homeowners may still be cautious about giving up their existing mortgage rate.

2. It Should Boost Buyer Activity

For potential homebuyers, any drop in mortgage rates will provide a more inviting housing market. Lower mortgage rates can reduce the overall cost of homeownership, making it more feasible for you if you’ve been waiting to make a move.

What Should You Do?

While a Federal Funds Rate cut is not expected to lead to drastically lower mortgage rates, it will likely contribute to the gradual decrease that’s already happening.

And while the anticipated rate cut represents a positive shift for the future of the housing market, it’s important to consider your options right now. Jacob Channel, Senior Economist at LendingTree, sums it up well:

“Timing the market is basically impossible. If you’re always waiting for perfect market conditions, you’re going to be waiting forever. Buy now only if it’s a good idea for you.”

Bottom Line

The expected Federal Funds Rate cut, driven by improving inflation and slower job growth, is likely to have a positive, though gradual, impact on mortgage rates. That could help unlock opportunities for you. When you’re ready, let’s connect. That way you’ll be prepared to take action when the time is right for you.

The Number One Mistake Sellers Are Making: Overpricing Their House

In today's housing market, many sellers are making a critical mistake: overpricing their houses. This common error can lead to a home sitting on the market for a long time without any offers. And when that happens, the homeowner may have to drop their asking price to try to re-ignite buyer interest.

Data from Realtor.com shows the number of homeowners realizing this mistake and doing a price reduction is climbing (see graph below):

If you’re thinking about making a move yourself, here’s what you need to know. The best way to avoid making a costly mistake is to work with a trusted real estate agent to find the right price. Here’s a look at what’s at stake if you don’t.

Not Paying Attention To Current Market Conditions

Understanding current market conditions is key to accurate pricing. You don’t want to set your asking price based on what happened during the pandemic. The market has moderated a lot since then, so it’s far better to align your price with today’s reality.

Real estate agents stay updated on market trends and how they impact the pricing strategy for your house.

Pricing It Based on What You Want To Make (Not What It’s Worth)

Another misstep is pricing it based on what you want to make on the sale, and not necessarily current market value. You may see other homes in your neighborhood selling for top dollar and assume yours can do the same. But you may not be considering differences in size, condition, and features. For example, maybe that other house is waterfront or has a finished basement. To sum it up, Bankrate explains:

“How do you find that sweet spot of pricing for profit but not overpricing? The expertise of your agent can be truly valuable here. A knowledgeable agent will understand fair market value in your area, how much your house is worth and how much you might reasonably expect to get for it in the current market.”

An agent will do a comparative market analysis (CMA) to make sure your house is compared with truly similar properties to get an accurate look at how it should be priced.

Pricing High to Leave Room for Negotiation

Another common, yet misguided strategy is to price your house high on purpose, so you have more room to negotiate down during the sale. But this can backfire. A price that seems too high often deters potential buyers from even considering the home. So rather than leaving room for negotiation, what you’ll actually be doing is turning buyers away. U.S. News Real Estate explains:

“You want to sell your house for top dollar, but be realistic about the value of the property and how buyers will see it. If you've overpriced your home, chances are you'll eventually need to lower the number, but the peak period of activity that a new listing experiences is already gone.”

An agent can help you set a fair price that attracts buyers and encourages more competitive offers.

Bottom Line

Overpricing your home can have serious consequences. A knowledgeable real estate agent brings an objective perspective, in-depth market knowledge, and a strategic approach to pricing.

Let’s connect so you can avoid making a pricing mistake that’ll cost you.

Fort Myers Beach Market Report 90 Days

Is Affordability Starting To Improve?

Over the past couple of years, a lot of people have had a hard time buying a home. And while affordability is still tight, there are signs it's getting a little better and might keep improving throughout the rest of the year. Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), says:

“Housing affordability is improving ever so modestly, but it is moving in the right direction.”

Here’s a look at the latest data on the three biggest factors affecting home affordability: mortgage rates, home prices, and wages. 

1. Mortgage Rates

Mortgage rates have been volatile this year, bouncing around from the mid-6% to low 7% range. But there's some good news. Data from Freddie Mac shows rates have been trending down overall since May (see graph below):

Mortgage rates have improved lately in part because of recent economic, employment, and inflation data. Moving forward, some rate volatility is to be expected. But if future economic data continues to show signs of cooling, experts say mortgage rates could keep going down.

 Even a small drop can help you out. When rates decline, it's easier to afford the home you want because your monthly payment will be lower. Just don’t expect them to go back down to 3%.

2. Home Prices

The second big thing to think about is home prices. Nationally, they’re still going up this year, but not as fast as they did a couple of years ago. The graph below uses home price data from Case-Shiller to illustrate that point:

If you're thinking about buying a home, slower price growth is good news. Home prices went up a lot during the pandemic, making it hard for many people to buy. Now, with prices rising more slowly, buying a home may feel less out of reach. As Odeta Kushi, Deputy Chief Economist at First American, says: 

“While housing affordability is low for potential first-time home buyers, slowing price appreciation and lower mortgage rates could help – so the dream of homeownership isn’t boarded up just yet.”

3. Wages

Another factor helping with affordability is rising wages. The graph below uses data from the Bureau of Labor Statistics (BLS) to show how wages have increased over time:

Look at the blue dotted line. It shows how wages usually go up in a typical year. On the right side of the graph, you'll see wages are rising even faster than normal right now – that's the green line.

This helps you because if your income increases, it's easier to afford a home. That’s because you won't have to spend as much of your paycheck on your monthly mortgage payment.

Bottom Line

When you put all these factors together, you see mortgage rates are trending down, home prices are rising more slowly, and wages are going up faster than usual. Though affordability is still a challenge, these trends are early signs things might be starting to improve.