Real Estate Agents: 4 Cities Where Buyers Have More Leverage This Spring
Homebuyers may finally be getting the upper hand this spring — but not everywhere. Slower price growth, rising inventory and steady wages are beginning to shift affordability in parts of the United States housing market. That said, the improvement isn’t evenly distributed. While some metros are seeing buyers regain leverage, others remain tight and highly competitive.
New data from First American, which tracks how far typical buyer purchasing power goes relative to home prices, highlights several markets where affordability is improving the most this season. According to the analysis, Miami, Denver, San Diego and Chicago are all showing measurable progress.
MoneyLion spoke with local real estate agents in each city to understand what’s driving the shift — and how buyers can take advantage.
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Miami: Increased Inventory Is Improving Affordability for Some Buyers
Miami’s affordability gains aren't universal, according to Anthony Askowitz, broker at REMAX Advance Realty II.
"That all depends on location, type of property and price range," he said. "The numbers we are looking at right now in Miami reflect the pre-war lower interest rates and higher confidence. Pent-up demand of buyers who waited and the gradual increase of inventory affect final sales prices."
That increase in supply, however, isn’t evenly spread across the market. Lower-priced homes remain scarce and continue to move quickly, while higher-end properties are sitting on the market longer.
"There are just over six months of supply for single-family homes in the lower price ranges of under $800,000," Askowitz said. "When you get to over $5 million in list price, there are 13 months of inventory."
Condo and townhome prices have declined over the past year, while single-family home prices rose 4.6%, underscoring how uneven affordability remains.
"The Miami market is still strong, but motivated by the increase in the inventory and competition for homes in the lower price ranges, with competition for buyers in the higher price ranges," Askowitz said.
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What Buyers Can Do
Askowitz recommends working with an agent who understands hyper-local trends and acting quickly when the right property appears.
"If you want the best, you must move quickly and not play games with the price," Askowitz said.
Denver: Wage Growth Is Outpacing Home Price Growth
In Denver, improving affordability isn’t coming from falling home prices but from increasing wages, according to Kerron Stokes, owner of REMAX Leaders.
"We've got a strong economy and employment, and we've got a lot of remote employees that work for corporations in other states," he said. "So we're seeing wages increase while the home appreciation has been modest."
For buyers, Stokes said the biggest affordability pressure often shows up after the purchase — particularly through insurance costs, which have climbed sharply across Colorado.
"Insurance rates going up as high as they have, as quickly as they have, for different reasons, has led to higher mortgage payments," he said. "Sometimes, 30% of a consumer's mortgage payment is the escrow for their homeowners' insurance."
What Buyers Can Do
Rather than focusing only on purchase price, Stokes recommends shopping around for insurance and working with a broker to find creative ways to reduce your insurance costs while still having the coverage you need.
He also warned buyers to pay close attention to homeowners' association (HOA) finances.
"Make sure your HOA has healthy reserves so you avoid the surprises of your HOA payment going up, which also would be a factor in your ability to purchase a home," Stokes said.
San Diego: More Listings Are Shifting Leverage Toward Buyers
San Diego’s market is easing not because of a downturn, but because it’s normalizing, said Mike Safiedine, broker/owner at REMAX Connections.
"We are seeing increased inventory and a slight pullback from buyers, which results in homes staying on the market longer," he said. "As a result, sellers are losing some leverage and becoming more realistic with their pricing, creating more room for negotiation and a more balanced environment."
Jan Ryan, broker at REMAX Direct, added that less demand due to higher mortgage rates and rising inventory — including new construction — are boosting affordability for buyers.
What Buyers Can Do
Preparation is key, Ryan said, particularly in a market where negotiation opportunities are returning.
"Buyers should get pre-approved to move quickly, work with an experienced local agent who knows recent comps and be ready to negotiate on price, contingencies and closing timelines," she said. "Lock your interest rate once you find a home. Your realtor can give you some trusted, local lenders that will know the latest loan programs.”
Chicago: Fixer-Uppers Can Offer a Lower Entry Price
In Chicago, buyers willing to compromise on a home's condition may find the best affordability opportunities, said Mike Opyd, broker at REMAX Premier.
"The best 'deals' tend to be with properties that are not completely updated and need some refreshing," he said. "Most people prefer updated properties, so those are typically the ones that are the main focus of buyers and sell first."
What Buyers Can Do
Opyd notes that focusing on homes that are outdated allows buyers to secure a home at a more favorable price while providing the income flexibility to make the updates they want.
"Plus, the updates will be in their style, on their terms and they will receive more equity when they sell down the line," he said.
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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