Is home affordability finally improving enough for you to jump back into the market?
Home affordability just hit its best point in nearly four years - and if you’ve been sitting on the sidelines, this might be your sign. And yes, we know… in Santa Barbara, “affordability” can sometimes feel like an oxymoron. But with mortgage rates easing, price growth slowing and wages rising, today’s numbers could look a lot better than the last time you checked. Some buyers are genuinely surprised by how much their potential monthly payment has shifted.
Why Home Affordability Is Improving Right Now
If you paused your plans over the past few years, you weren’t alone. Rapid price increases and elevated mortgage rates made monthly payments feel out of reach for many buyers.
But today, three key factors are working together to improve home affordability:
1. Mortgage Rates Have Eased
Rates aren’t at historic lows, but they’ve come down from their recent peaks. Even a modest rate improvement can significantly reduce your monthly payment - sometimes by hundreds of dollars.
2. Home Price Growth Has Slowed
We’re no longer seeing the rapid price acceleration that defined the frenzy market. In many areas, price growth has stabilized, giving buyers more breathing room and negotiation power.
3. Wages Have Increased
Income growth over the past few years has helped offset higher housing costs. When wages rise while price growth slows, the math starts to look better for buyers.
That combination is why home affordability is now at its most favorable point in almost four years.
Does That Mean Affordability Is “Fixed”?
Not quite.
Housing still requires careful financial planning. But what’s important is direction. For the first time in years, the trend is moving toward improved affordability - not away from it.
And here’s what’s surprising many buyers right now:
When they re-run their numbers, their projected monthly payment is often significantly lower than it was the last time they checked.
For some, that difference is the tipping point.
Why You Should Re-Run Your Numbers
If you stepped out of the market, your decision made sense at the time. But markets shift - and so does your buying power.
Before assuming homeownership is still out of reach, consider:
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Your income may be higher.
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Rates may be lower than when you last calculated.
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You may need less of a monthly payment buffer than you previously assumed.
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Inventory conditions may offer better opportunities.
You don’t need to guess. You just need updated numbers.
What This Means for You in Santa Barbara
In a competitive and desirable market like Santa Barbara, timing and strategy matter. As Santa Barbara Real Estate Advisors, we’re seeing buyers re-enter the conversation because the math finally makes sense again.
Improved home affordability doesn’t mean waiting for perfect conditions. It means recognizing when conditions start working in your favor — and making informed decisions based on today’s reality, not last year’s headlines.
Our Final Thoughts on Home Affordability
If you put your plans on pause, this may be your signal to revisit them.
The market has shifted. Payments are changing. Opportunities are reopening.
But you won’t know what’s possible until you look.
If you’re curious how today’s numbers compare to when you last checked, let’s take another look together. You may be closer than you think.
Schedule a consultation with Dianne and Brianna Johnson, and we’ll walk through your updated buying power and options so you can move forward with clarity and confidence.
