If affordability has been the biggest thing standing between you and a home, there’s a little good news. 

Asking prices have started to come down.

The typical seller listed their house for a median of $429,500 in May. That’s 2.4% lower than a year ago, according to Realtor.com. On its own, that won’t transform what you can afford, but in today’s market every little bit helps and it signals a broader shift taking place.

Buyers Are Finally Catching a Break

Check out this data from Realtor.com and you can see this is the first May in years where buyers have caught any sort of break price-wise.

Each May from 2022-2025, things held pretty steady. But this year? You can see that more noticeable shift in your favor (see graph below):

While the dip from $440,000 to $429,500 isn’t a big one, it gives you more breathing room. And that’s not a small thing when affordability has been this tough.

Now, lower asking prices don’t mean every home is suddenly within your range. But they do show buyers are gaining a little ground.

And in today’s market, a little ground can go a long way. 

What That Means for the Housing Market

And just in case this crossed your mind, this is good news for your move, not bad news for the market as a whole.

The subtle dip from last May to this one shows prices are easing, but they’re not dropping off a cliff. What this is actually a sign of is that the market’s rebalancing now that the number of homes for sale has grown.

Buyers have a bit more power again, and sellers know they can’t name just any price and expect their house to sell. They either meet the market where it is, or face a price cut later. And in general, sellers would rather avoid a price cut. As the New York Post explains:

“Rather than swinging for the fences with pandemic-era price tags, sellers are increasingly coming to terms with a new reality. The share of listings featuring price cuts actually fell to 17.5% in May, suggesting homeowners are doing their homework before putting up a “For Sale” sign instead of chasing unrealistic numbers and cutting later.“

This signals a broader change in the market.

Seller expectations have been skewed a little high since the pandemic buying frenzy – you’ve probably felt that firsthand. But now, things are starting to normalize. It could mean less back-and-forth to land on a fair number. And homes should be priced a bit more realistically from the start.

Bottom Line

If affordability has been your top concern, the recent dip in prices is an opening. Connect with a local real estate agent to see what that looks like in your area.

Whether you’re dreaming about buying your first home or wondering if it’s time to move on from the one you’re in, affordability is probably weighing on your mind. Home prices are still high in many markets, and even though things have improved a bit over the past year, making the numbers work can still feel like a stretch.

But the people finding ways to move right now usually have one thing in common. They didn’t wait for affordability to come to them. They went looking for it.

According to PODS, 61% of people across all generations say affordability is the biggest factor when deciding where to move. And it’s led a growing number of people to do one thing – broaden their search to include more affordable areas they hadn’t seriously considered before. As PODS, put it:

“. . . moving is increasingly driven by affordability, connection, and quality of life. As economic pressures persist, Americans are taking a more intentional, values-driven approach to where they choose to live.”

It’s Not Just the Home Price – It’s the Whole Cost of Living

Here’s where it gets really interesting. When people talk about moving for affordability, they’re not just talking about finding a cheaper house. They’re thinking about the full picture. What does it actually cost to live somewhere?

WalletHub looked at exactly this, measuring housing costs as a share of median monthly household income across every state (see map below).

Take a look at where you live on that map. The lighter the blue, the more affordable it generally is to live there. The darker the blue? Just the opposite.

If your state is showing up on the darker blue end of the scale, the cost of living may be putting a real pinch on your wallet, and it may be worth exploring what a lighter-blue area could mean for your finances.

Because if you’re less financially stretched, imagine how that could change things. Less stress. Less worry. More freedom and peace of mind.

You Don’t Have To Move to Another State To Find a Better Deal

But finding more affordable homeownership doesn’t have to mean a cross-country move. It doesn’t even have to mean leaving your state, your family, or your favorite coffee shop behind.

Every market has more affordable pockets that most buyers never think to explore – neighborhoods, towns, and communities where home prices are lower, property taxes are more manageable, and the overall cost of living just works better.

A great local real estate agent knows exactly where those places are.

And if you work remotely, or have any flexibility in where you’re based, your options open up even further. Remote work has already changed the way millions of people think about where to live, and that trend isn’t going away.

When location stops being tied to a daily commute, a more affordable area that’s a bit farther out suddenly becomes a very real option.

Bottom Line

Affordability is a real challenge, but it’s not an unsolvable one. The key is being open to places you might not have considered before. A local real estate agent can help you find them.

Ready to find out which areas have the best affordability right now? Reach out today.

You started shopping with a specific mental image of your future home in your mind. Then the houses in your budget came in smaller than you pictured.

That’s the reality for a lot of buyers right now. Affordability is tight.

But don’t let that discourage you. Going smaller might actually be a smart play in today’s market – and the upside can be bigger than you’d think. Let’s break down two places to look where smaller won’t necessarily feel like a compromise.

Homebuilders Are Focused on Smaller Options Lately

For starters, smaller is kind of on trend right now. Newly built homes have been shrinking for years. According to the latest data from the Census, the median square footage of new single-family homes has been falling overall since 2014 (see graph below):

Why? Builders focus on the types of homes consumers want the most. After all, they want to build what will actually sell. And for the past decade, buyers seem to agree less is more.

Especially right now, when affordability is a key concern, they’re building homes with smaller square footage than a decade ago. And that’s good because that may be more within budget for many buyers. It’s part of why new home prices recently hit a 5-year low.

So, if you’re not getting excited about any of the existing options at your price point, it may be time to check out what builders are doing in your area.

You may find brand-new options you really love with all the latest and greatest features. And if you’ve got modern appliances and design, maybe slightly less square footage doesn’t feel like that much of a compromise anymore, especially if the house is move-in ready.

Condos Are Opening Up Another Path

Just in case you don’t have a ton of new builds in your area, another avenue worth exploring is condominiums or condos.

For buyers crunching numbers to make the math work, condos can take real pressure off the budget. According to the National Association of Realtors (NAR), the median price for condos is less than the median for single-family homes in every region (see graph below):

Part of that is because condos are typically smaller. And smaller square footage can come with a smaller price tag too. That’s a selling point to affordability-strapped buyers right now – and it’s one of the reasons we’re seeing a bump in condo sales.

The number of condos sold rose 2.7% from just a month ago. It’s also up year over year, according to NAR. Ali Wolf, Chief Economist for New Home Source, explains why more buyers are going this route:

“In addition to favoring smaller floor plans, more consumers are showing a willingness to live in an attached home. This shift is not driven by a preference for shared walls, but by a pursuit of value.”

The Community Does Some of the Heavy Lifting

Here’s why smaller may still work for you. Whether it’s a condo complex or a neighborhood of detached single-family homes, the right community can give you back in amenities what you trade in square footage.

Many developments are designed so the home is just one piece of where you actually spend your time. Master-planned communities often include walking trails, pools, fitness centers, co-working spaces, and outdoor gathering areas – the kind of features that pick up where your floor plan leaves off.

No room for a dedicated office? The co-working space might be just a five-minute walk away. Want a place to work out? It’s already built in with the shared gym. And features like that can make opting for a smaller footprint feel less like a compromise – and more like a big lifestyle upgrade.

Bottom Line

Today’s smaller single-family homes and condos have more going for them than the square footage suggests. They can give your budget some breathing room and put you in a community designed with lifestyle in mind.

Curious about the options in your area? Connect with a local real estate agent to walk through what’s available.