Selling a home can take time, planning, and patience.You may have prepared your home, welcomed showings, answered questions, and waited for the right buyer only to have your listing expire without a
3 Reasons Home Affordability Is Improving for Buyers This Fall
Dated: September 25 2025
Views: 105
For the past couple of years, many homebuyers in Southern California and across the U.S. have struggled with affordability. Rising home prices and higher mortgage rates forced many to pause their plans. Maybe you were one of them.
But this fall, there’s good news: affordability is finally showing signs of improvement. If you’ve been waiting for the right time to step back into the market, here are three reasons why conditions may be shifting in your favor.
The latest data from Redfin shows the typical monthly mortgage payment has been coming down, and is now about $290 lower than it was just a few months ago (see graph below):
1. Mortgage Rates Are Coming Down
Mortgage rates have dipped compared to earlier this year. Back in May, they hovered near 7%, but they’ve since dropped closer to 6.3%.
That shift may seem small, but it has a real impact on monthly payments. On a $400,000 mortgage, today’s rates could save you about $190 per month compared to what you’d pay at 7% (Redfin, 2025).
And buyers are already responding. According to Joel Kan, VP and Deputy Chief Economist at the Mortgage Bankers Association (MBA):
“The downward rate movement spurred the strongest week of borrower demand since 2022 . . . Purchase applications increased to the highest level since July and continued to run more than 20 percent ahead of last year’s pace.”
✅ Pro Tip for Buyers: Even a small rate change can affect your affordability. Get pre-approved now so you’re ready to lock in a favorable rate when you find the right home.
✅ Pro Tip for Sellers: Lower rates bring more buyers back into the market. Pricing competitively this fall could attract stronger offers as demand increases.
2. Home Price Growth Has Slowed
After years of steep price hikes, home price growth has cooled. According to Odeta Kushi, Deputy Chief Economist at First American:
“National home price growth remains positive, but muted — low single digits — and we expect this trend to continue in the second half of the year.”
For buyers, this means more predictability and easier budgeting. In some areas of Los Angeles, Orange, Riverside, and San Bernardino Counties, prices have even softened, creating opportunities that didn’t exist a year ago.
✅ Pro Tip for Buyers: Don’t just focus on list prices—look for homes that have been sitting on the market. Sellers may be more open to negotiating.
✅ Pro Tip for Sellers: Even with slower growth, homes priced right are still selling. Overpricing could cause your listing to sit, while strategic pricing could spark competition.
3. Wages Are Rising Faster Than Prices
Affordability isn’t just about mortgage rates and prices—it’s also about income. According to the Bureau of Labor Statistics (BLS), wages are up nearly 4% annually.
Lawrence Yun, Chief Economist at the National Association of REALTORS® (NAR), explains:
“Wage growth is now comfortably outpacing home price growth, and buyers have more choices.”
This is a big deal: with paychecks rising faster than home values, buyers are gaining extra financial breathing room.
✅ Pro Tip for Buyers: Use this moment to reassess your buying power. Rising wages could expand your options for neighborhoods and property types.
✅ Pro Tip for Sellers: Highlight features that appeal to today’s financially stronger buyers, like energy efficiency, smart home upgrades, or move-in-ready finishes.
What This Means for Buyers This Fall
Lower mortgage rates, slower price growth, and rising wages are combining to improve affordability. In fact, Redfin reports that the typical monthly mortgage payment is already about $290 lower than it was just a few months ago.
While affordability is still a challenge, the numbers are looking better than earlier this year. For many, this fall could be the right window to buy.
Bottom Line
If you’ve been waiting for the right time to make a move, this fall may be your opportunity.
👉 For Buyers: Re-run your numbers with a trusted real estate agent and lender. Today’s shifting conditions may finally put your dream home within reach.
👉 For Sellers: The improving affordability picture means more buyers are coming back into the market. Position your home strategically to capture their attention.
📲 Ready to explore your options? Contact Shasha & Terri Team today at 626-893-9617 or 626-315-0025. Whether you’re buying or selling in West Covina, Covina, San Dimas, Baldwin Park, or anywhere in Southern California, we’ll help you make the most of this moment.
Shasha Truong & Terri Nguyen Realty Group
Your Realtors-For-Life
Serving Los Angeles, Orange, Riverside, and San Bernardino Counties for 25+ years & beyond
📞 Call/Text: 626-893-9617 | 626-315-0025
📧 shasha.truong@exprealty.com | terri.nguyen@exprealty.com
🌐 www.shashaterri.com
🏠 DRE# 01253561 | DRE# 01449810
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References:
Mortgage Bankers Association (MBA), Weekly Mortgage Applications Survey (2025)
Redfin, Housing Market Insights (2025)
Bureau of Labor Statistics (BLS), Average Hourly Earnings Report (2025)
National Association of REALTORS® (NAR), Economic Outlook (2025)
First American, Housing Market Analysis (2025)
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We are Shasha and Terri, your highly experienced real estate professionals dedicated to turning your real estate goals into reality. Fluent in English and Vietnamese, we bring 27+ years of experience ....
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