The HousingCoach at Fathom Realty
The HousingCoach
Less House, More Home: Why Smaller Homes Are Paying Off for Today’s Buyers

Less House, More Home: Why Smaller Homes Are Paying Off for Today’s Buyers

by | Jun 1, 2026

Less House, More Home: Why Smaller Homes Are Paying Off for Today’s Buyers Simplifying The Market

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):

a graph of a graph showing a line of a house

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):

a graph of a number of blue and green bars

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.

Newly Built Home Prices Hit a 5-Year Low

Newly Built Home Prices Hit a 5-Year Low

by | May 21, 2026

Newly Built Home Prices Hit a 5-Year Low Simplifying The Market

If you’ve always assumed a newly built home is just not in your budget, you should know the math just got a little friendlier.

The median sale price of a newly built home is now at its lowest level since 2021, according to the latest data from the Census. And on top of that, builders are still rolling out incentives to bring buyers through the door.

Here’s what’s happening, and what it means if you’re shopping right now.

Prices on Newly Built Homes Have Come Down

After a steep climb during the pandemic years, prices have eased a bit. The median sale price of newly built homes is sitting at about $390,000. That’s the lowest it’s been in nearly five years (see graph below):

a graph of a home pricesWhile local markets vary, the national trend is moving in your favor, especially if you’re a first-time buyer. According to Zonda, prices in the entry-level price range have dropped roughly 2.7% over the past 12 months – more than any other price tier.

That doesn’t mean every home in every market is suddenly affordable. But it does mean that, broadly, you’ll see the best prices on new builds since 2021, if you’re buying now.

Why This Isn’t a Repeat of 2008

And just in case you’re thinking it, lower prices don’t mean the new home market is in trouble. Builders today are being intentional about how much inventory they have, so it doesn’t pile up the way it did in 2008.

If you look back up at the graph, you’ll see that even after the recent improvement in new home prices, they’re still higher than pre-pandemic norms. So, this isn’t a crash. It’s a builder strategy to keep inventory moving.

Homebuilders Are Still Sweetening the Deal

Lower sticker prices aren’t the only break buyers are getting. According to the National Association of Home Builders (NAHB), 60% of builders are currently offering some form of incentive to attract buyers. Those typically include:

  • Help with closing costs: Some builders are covering thousands of dollars in fees to reduce the upfront cost of buying.
  • Extra upgrades: Think premium finishes, appliance packages, and designer features, often added at no extra cost.
  • Mortgage rate buydowns: When the builder pays to lower your mortgage rate, which reduces your monthly payment.
  • Price cuts: Over one in three builders (36%) are cutting prices right now, averaging about 5% off list price (see graph below):

a blue and grey pie chartThat last point catches a lot of buyers off guard – most assume that builders won’t budge on price.

But builders need to move what they’ve built. That’s a different mindset than a homeowner deciding whether to budge on price. So, you may find they’re more open to adjusting the price than you’d think. As Joel Berner, Senior Economist at Realtor.com, puts it:

“. . . many existing-home sellers resort to taking down their listing instead of taking less than their desired price, but builders are more motivated to sell their inventory than owner-occupants . . .”

And if you use the version of the graph that shows 2008 prices, you can even reference that in this explainer.

And if here, should I change the last sentence of the lede?

Bottom Line

Builder incentives and lower new home prices are working to your advantage in a way they haven’t in years. Connect with a local real estate agent to see what’s available in your area and what kind of deal a builder may be willing to make.

Are Home Prices Going To Fall?

Are Home Prices Going To Fall?

by | May 18, 2026

Are Home Prices Going To Fall? Simplifying The Market

It’s one of the biggest hold ups some buyers have right now: “What if I buy, and home prices go down?”

With everything in the news, that concern makes some sense. No one wants to make a big financial decision at the wrong time. But here’s what’s important to know. You don’t want to get hung up on the few places seeing slight declines right now.

When you zoom out and look at the full picture, home prices usually rise over time.

What the Data Really Shows

Take a look at the visual below. It uses data from Case-Shiller and Bilello to show how home prices have changed year by year going all the way back to the 1950s.

Here’s the key takeaway.

Outside of the housing crash, home prices have either held steady or increased in just about every year for decades (see visual below):

a chart of percentages and numbersThat’s a remarkably consistent track record. And it shows something a lot of headlines miss.

While short-term shifts can happen, it’s the long-term gains that really matter.

Why Prices Tend To Rise Over Time

There are a few core reasons prices usually go up each year:

  • There are always people who need to move. People need a place to live, and that demand will never fully go away. It may ebb and flow, but someone will always have to move as big changes happen in their life. So, homes stay in demand.
  • There still aren’t enough homes for sale. While the number of homes for sale has grown, nationally there’s still an undersupply based on how many people want a home. That keeps upward pressure on prices.
  • Inflation has an impact. Over time, the cost of goods (including homes) naturally increases. That pushes home values higher.

What That Means for You as a Buyer

It’s easy to get caught up in what might happen with home prices next month or next year, especially if you’re a first-time buyer and you’re feeling a little anxious about making such a big financial commitment. But the big picture is clear. Prices usually rise.

That doesn’t mean prices will go up every single year in every market. Real estate is local, and there can be short-term ups and downs. We’re seeing that in some places right now. You can even see it in the few annual dips in the visual above.

But historically, the declines have been temporary.

That’s why it’s generally recommended to buy a home only if you plan to stay for a while – typically at least five years. That’s normally enough time to see your house grow in value. And, it’s enough so you can ride out any short-term changes in the market.

Because when you can do that, something powerful happens. Those rising home values grow your net worth, and by extension, help you build wealth.

The right decision isn’t about timing the market perfectly. It’s about making a move that works for your life and staying in it long enough to benefit from the bigger trend.

Bottom Line

Home prices have a long track record of going up over time. And that’s why buying a home is generally considered a safe long-term investment.

That certainly doesn’t mean you have to buy now. You should only move when it makes sense, and you plan to live there for a while.

But if you’re interested, let this reassure you. If you want to talk about what home prices are doing in our market, your goals, or your timelines, reach out to a local agent.

Could Co-Buying Be the Answer for Some First-Time Buyers?

Could Co-Buying Be the Answer for Some First-Time Buyers?

by | May 7, 2026

Could Co-Buying Be the Answer for Some First-Time Buyers? Simplifying The Market

For a lot of would-be first-time buyers, affordability is the thing that’s standing in the way. But some buyers are getting creative and finding a way to still make the numbers work – and that’s through co-buying.

The Dream Is Still Alive. The Math Just Isn’t Working for Everyone.

Young people haven’t given up on the dream of owning a home – not even close. According to FirstHome IQ, homeownership still ranks among the top life goals for the next generation.

The problem? 73% of Gen Z and millennial buyers cite affordability as the reason for not making homeownership a priority. And it shows. First-time buyers now make up just 21% of all home purchases, the lowest share since the National Association of Realtors (NAR) started tracking the data in 1981.

But still, some buyers are making it happen. And a portion of them are turning to co-buying to get their foot in the door.

So, What’s Co-Buying?

Co-buying means purchasing a home with someone else, like a friend, sibling, or unmarried partner. You combine incomes, split the down payment, and share monthly costs. For some people, it’s a creative way to turn “someday” into a concrete move-in date that’s just around the corner.

And it’s catching on fast, just look at where things stand today. According to CoBuy.io, 64 million Americans now co-own a home with someone they’re not married to. In fact, 31.5% of home purchases involve co-buyers (see graph below):

Why It Works

Here are just a few of the top reasons buyers are going this route, according to NerdWallet:

  • Quicker path to homeownership: If owning a home is a serious goal for you, buying with someone else can help make that reality on a shorter timeline. Two or more people can save up a down payment a lot faster than one. That’s less time waiting and more time building equity in a place that’s yours.
  • More purchasing power: With multiple incomes going toward the home purchase, you might be able to afford a nicer home or live in a more popular neighborhood. Sometimes teaming up means getting the home you actually want, not just the one you can barely afford on your own.
  • Easier loan qualification: Added income from more than one buyer can also help with your debt-to-income (DTI) ratio, which the lender will calculate based on all the borrowers.
  • Lower housing costs: Splitting up a mortgage payment multiple ways could maybe even make owning less expensive than renting. Plus, sharing costs can make repairs or renovations more manageable, too.

Things To Keep in Mind

If you’re considering going this route, there are some things you’ll want to think over. For starters, co-buying works best with people you trust and share financial goals with. So, before moving forward, make sure everyone agrees on how costs are split, who handles what, and what happens if one person wants to sell down the road.

That’s why a written co-ownership agreement can be a smart move. It keeps everyone on the same page and helps avoid headaches down the line. Think of it less like a legal formality and more like a game plan for your new investment.

Bottom Line

Affordability challenges are real, but they don’t have to mean waiting indefinitely. Co-buying is helping some first-time buyers stop waiting and start putting down roots.

If you’re curious whether it could work for your situation, talk with a local real estate agent. Reach out today and figure out your path to homeownership together.

Think You Have To Put 20% Down? Most First-Time Homebuyers Don’t.

Think You Have To Put 20% Down? Most First-Time Homebuyers Don’t.

by | Apr 27, 2026

Think You Have To Put 20% Down? Most First-Time Homebuyers Don’t. Simplifying The Market

According to Google Trends, online searches for down payment information recently hit an all-time high. And that’s a clear sign more buyers are trying to figure out what they really need to save before making a move (see graph below):

a graph of a line graphIf you’re wondering the same thing, you can always turn to the internet for answers. But a lot of the time, it’s better to ask a local expert. Because here’s what a pro would tell you.

The 20% Down Payment Myth

The idea that you need 20% down to buy a home is one of the biggest misconceptions around the homebuying process. And the data debunks the myth.

While there are benefits to putting that much money down, most first-time buyers put down far less.

Here’s why. Unless it’s stated by your lender, you typically don’t have to have a 20% down payment. There are even some loan options designed to help you get into a home with a much smaller upfront cost. As the Mortgage Reports explains:

“The amount you need to put down will depend on a variety of factors, including the loan type and your financial goals. If you don’t have a large down payment saved up, don’t worry—there are plenty of options available, and you don’t need to put down the traditional 20% . . . many homebuyers are able to secure a home with as little as 3% or even no down payment at all . . .”

For example, FHA loans allow down payments as low as 3.5%, while VA and USDA loans offer zero down payment options for qualified applicants, like Veterans.

And those options are just one reason so many first-time buyers are able to buy without a 20% down payment.

What Buyers Are Actually Putting Down

So, if buyers aren’t doing 20%, how much do they actually put down?

According to the National Association of Realtors (NAR), the median down payment for first-time homebuyers is only 10%. That’s half of what you probably expected.

a diagram of a pie chartThat means if you’re aiming to save 20% because you think you have to, you may be setting a timeline that’s longer than necessary.  

And here’s some more good news. It’s not only that you may be able to buy with less money down than you thought, but there are also options to help you get to your down payment goal even faster.

Why You Should Look into Down Payment Assistance Programs

There are a lot of programs designed to help you save for a down payment – and they can make a big difference in how fast you hit your savings target. Unfortunately, buyers don’t realize how many there are, or that they may qualify for help.

Research from Realtor.com shows almost 80% of first-time homebuyers qualify for down payment assistance (DPA), but only 13% actually use it (see chart below): 

a blue and orange pie chartAnd that’s another big miss holding would-be buyers like you back.

In the U.S., there are over 2,600 homeownership programs available, many offering significant financial support. As Down Payment Resource shares:

“With an average benefit of $18,000, down payment assistance (DPA) remains one of the most essential tools for addressing the nation’s affordability challenges. Programs continue to expand in scope, serving a broader range of incomes, property types and borrower needs, including first-generation, military and repeat buyers.”

Imagine how much further your savings could go with an extra $18,000 you can use to buy. In some cases, you may even be able to stack multiple programs, giving what you’ve saved an even bigger boost.

Bottom Line

The simple truth is: most first-time buyers don’t put 20% down. And if you’ve been waiting to buy until you have that saved, you may be setting a timeline that’s longer than necessary.

To find out what you really need to save and if you qualify for any help, connect with a trusted lender who can walk you through your options. You may be able to buy sooner than you thought.

The 10 Best Markets for First-Time Buyers This Spring

The 10 Best Markets for First-Time Buyers This Spring

by | Apr 20, 2026

The 10 Best Markets for First-Time Buyers This Spring Simplifying The Market

For a while, buying your first home hasn’t just felt hard. It may have felt out of reach.

Not because you weren’t ready.

Not because you weren’t trying.

But because every time you ran the numbers, they didn’t work.

That’s why so many first-time buyers stepped back.

But after years of sitting on the outside looking in, this Spring could give buyers like you an opening again – especially in some markets.

Metros Where Buyers May Have an Easier Time Breaking into the Market 

Zillow just released a list of the top 50 metros for first-time buyers this Spring. And here’s a quick snapshot of the top 10 (see chart below): 

a table with white text and black text

According to Zillow, in these top-ranked markets, median-income households can afford 68% of all homes for sale. Let that sink in.

Not long ago, it felt like you could barely afford anything.

Now, you may actually have some options again.

That doesn’t mean every home is suddenly going to fit your budget. But it does mean the door that felt closed for so many buyers is starting to crack back open. And in a number of cities, first-time buyers may finally be getting a shot at buying.

Why This Is Starting To Open Up

These cities are rising to the top not because of any one big change, but from a few smaller ones finally lining up. As Orphe Divounguy, Senior Economist at Zillow, explains:

“First-time buyers are finally seeing some light at the end of the tunnel. Affordability is still a challenge, but rising incomes, stabilizing prices and improving inventory are creating real opportunities in parts of the country. In the strongest markets for first-time buyers, they’ll find more choices, less competition and a clearer path to homeownership than they’ve had in years.”

Basically, three big things are working in your favor:

  • More homes are hitting the market. Realtor.com says inventory is up 8.1% compared to last year. That gives you more choices, less pressure, and more chances to find a place that fits your budget.

  • Price growth is moderating, so homes aren’t moving further out of reach as quickly. Some may even be falling back within your target price point.

  • Incomes are rising. If you make more money, that can offset some of the affordability challenges too.

And even though mortgage rates have been higher lately, that combination can still make a difference. As Mark Fleming, Chief Economist at First American, explains:

“Income growth has outpaced house price growth for 19 straight months, boosting house-buying power even as mortgage rates remain elevated.”

How To Find the Opportunities in Your Local Market

But what if your city didn’t make the top 10 list, or even the top 50 markets? Here’s what you really need to remember.

There’s going to be opportunities in every market, if you know where to look.

Even in the same city, two buyers can have completely different experiences. And a big part of that is who they choose as their partner. The right agent knows how to find pockets of opportunity in any market. That could mean:

  • A neighborhood where prices haven’t climbed as quickly

  • A part of town with more inventory, or

  • A new build community offering incentives so builders can sell their inventory

So, even if your city didn’t make the list, that’s okay. There’s still an opening for you, you just need your agent to help you find it.

Bottom Line

For a long time, first-time buyers have felt stuck, waiting for their turn to buy. But for some buyers, this Spring might be the first time in a while where things start to feel more within reach again.

Want to see which neighborhoods could give you the best shot at buying right now? Talk to a local agent.

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