The Housing Market Isn’t “Fixed”… But It’s Finally Breathing Again

For the last few years, the housing market has felt like that one group chat that never stopped arguing. Rates went wild. Prices jumped. Monthly payments got scary. And a lot of people, especially millennials, just quietly closed Zillow and said, “Yeah… not right now.”

Restaurant in Uptown Denver, Colorado, featuring classic brickwork and red umbrellas, set against the backdrop of the city's skyline.

Here’s the thing no one really wants to admit yet: the market isn’t broken anymore... It’s recalibrating.

Affordability Took a Hit — Now It’s Slowly Crawling Back

From 2021 to 2023, affordability got absolutely wrecked. Mortgage rates more than doubled, prices surged, and monthly payments jumped by over a thousand dollars compared to pre-pandemic levels. That’s not a fun, that’s survival mode.

But starting in the second half of 2025, it shifted. Rates eased. Price growth cooled. Wages kept climbing.

Nationally, the share of income it takes to buy a home is now the best it’s been since mid-2022. Still high, sure, but trending the right way. And trends matter more than headlines.

This Isn’t a “Cheap Homes Are Back”, It’s a “Less Brutal” One

Homes didn’t suddenly become affordable overnight, but the pressure is easing.

Mortgage rates are sitting near their lowest levels in three years. Prices are still rising, but not at that unhinged, post-pandemic pace. And wages are growing faster than home prices, which hasn’t been true in a while.

That combination matters.

It means monthly payments are coming down. It means buyers who were priced out are starting to re-enter the conversation. It means the math doesn’t feel as hostile as it did a year ago.

In fact, the typical monthly mortgage payment is now lower than this time last year, mostly thanks to rate movement alone.

Not life changing, but momentum changing.

Tree-lined streets and charming brick houses characterize this peaceful neighborhood in Denver, Colorado.

Waiting for “Perfect Rates” Might Cost You

A lot of people are still stuck in wait mode, hoping rates drop just a little more. Sub-6% feels like the magic number everyone’s chasing.

The difference between today’s rates and that “perfect” rate people are waiting for? It’s way smaller than most think.

And when rates drop further, more buyers come back. More buyers = more competition. And more competition usually means prices start creeping up again.

So the trade-off becomes - Slightly lower rate vs. higher price + more competition.

Buyers Are Already Tip-Toeing Back In

We’re in a super rate sensitive market right now. Historically, whenever rates dip into the low-to-mid 6% range, buyer activity picks up.

And that’s exactly what’s happening.

It’s not a flood. It’s not 2021 chaos, but it is a steady return of buyers who sat on the sidelines for the last two years.

More people qualifying. More showing requests. More movement, slowly, then all at once.

That’s usually how these cycles go.

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2026 Feels Like a “Small Wins” Year

This isn’t the comeback year. It’s a reset.

Affordability is improving. Buyer confidence is stabilizing. The market is finding its footing again.

Think less roller coaster, more steady tailwind.

After the last few years, boring sounds kind of nice.

The housing market doesn’t need hype right now, it needs consistency. For the first time in a while, the fundamentals are quietly lining up in that direction.

Not fixed. Not easy. But finally… moving forward.