HousingWire
Slowing price growth is another critical affordability factor
U.S. homebuyers are gaining ground on affordability as price growth slows and housing supply expands, according to the latest HousingWire Data through Jan. 24.
While affordability challenges persist — despite mortgage rates trending lower — recent shifts are improving purchasing power and giving buyers more leverage than they had a year ago.
Nationally, the median list price slipped to $419,900 while total inventory rose 9.6% to nearly 698,000 homes.
Price reductions are currently sitting at just under 33%, essentially equal to this time last year.
The shift is being felt on the ground in major metros, including north Texas.
Realtor Todd Luong of REMAX DFW Associates in Frisco said his recent experience reflects meaningful improvement for buyers, even if affordability remains strained.
“Here in the Dallas real estate market that I serve, affordability remains a challenge,” he says. “However, there is a significant amount of data showing that buyer conditions have improved over the past year and that buyers are gaining affordability ground. This should eventually increase housing demand to some degree as we head into the busy spring buying season.”
Dallas mirrors the national trend of rising supply and cooling prices — both of which are central to affordability gains.
Inventory gains ease competition
Expanding inventory is one of the clearest drivers of improving homebuying power. Nationwide, inventory is up nearly 10% year-over-year and similar gains are emerging in many local markets.
Luong said this dynamic is already evident in his market.
“The increase in housing supply is one of the clearest indicators that the Dallas market has become more buyer-friendly,” he said. “Rising inventory generally means less competition per home, giving buyers more negotiating power. Months of inventory is another key metric that has increased.
“More inventory and more months of supply will typically ease competitive pressures (fewer bidding wars and more negotiation), which allows buyers to gain greater affordability, even if home prices remain high.”
At the national level, months of inventory rising to 2.6 months reflects gradual progress toward a more balanced market — even though supply remains below pre-pandemic norms, HousingWire Data shows.
Prices stabilize and, in some areas, fall
Slowing price growth is another critical affordability factor.
The national median list price declined 1.2% year-over-year, and nearly half of all states are seeing price declines or minimal increases. Wyoming, Maine, Kansas, Minnesota, Nebraska and Oregon posted some of the largest statewide drops.
Many metro areas have experienced even sharper corrections. Ames, Iowa, recorded a 22.3% year-over-year price decline, followed by Dalton, Ga.; Napa, Calif.; Lawrence, Kan. and Saginaw, Mich.
“Additionally, home prices in the Dallas area have cooled or even declined year-over-year (depending on the specific location),” Luong said. “This directly helps buyer purchasing power, as the same budget allows buyers to purchase more home than they could a year ago.”
Recent First American data from late 2025 shows homebuyers with roughly $36,000 more homebuying power than at the same time in 2024.
Affordable markets still competitive
Even in some of the country’s most affordable regions, demand remains resilient.
Josh McGrath, founder and broker-owner of Better Homes and Gardens Real Estate Central in Charleston, W.Va., says affordability in his market remains among the strongest nationally but competition has not disappeared.
“Our average sell price here in the capital city runs around $220,000,” he said. “You can get a three-bed, two-bath and garage for that range now. Sometimes, if they’re a little more updated, they’re going to be a little more expensive, but still pretty affordable compared to the rest of the country.”
However, affordability itself is attracting demand, which continues to pressure entry-level price points.
“We’re seeing so many people come to West Virginia based on affordability and cost of living, and we’re still seeing multiple offers,” McGrath said. “So, for houses in that ($250,000) and under price point, it’s not uncommon for us to still be seeing two to four offers on those houses, and them selling for $10,000 to $15,000 over their listed sales price based on demand.”
Longer selling times signal negotiation room
“The final sign of this shifting market here is how long homes are taking to sell,” Luong said. “Homes in Dallas are spending more time on the market, too, compared to last year, which indicates less urgency from buyers and more room for negotiating both price and terms.”
HousingWire Data shows homes taking longer to sell nationally, with the median days on market now standing at 91 days.
McGrath expects broader market dynamics to continue improving buyer conditions, particularly if rate volatility subsides.
“I anticipate, unless there’s something drastic happens on a global scale, that we’re going to see rates stabilize in the high fives, which is going to be good for buyers,” he said.
He added that acceptance of higher-rate reality could unlock much-needed supply.
“We’re going to see both buyers and sellers realize that the days of the 3% interest rate are long gone and not coming back,” McGrath said. “So the people that keep waiting on it to bottom out are going to realize this is the time to move if they actually want to move, which will unlock inventory.”
While affordability remains constrained by high overall prices and mortgage rates, the underlying trend is improving.
Price stabilization, rising inventory and longer selling times are steadily restoring homebuying power suggesting a more accessible housing market as the spring buying season approaches and 2026 unfolds.