The payment is what's driving buyers away, not the price!

Price is always at the forefront of the discussion when people discuss the housing market. Here's the truth: most buyers do not leave the market due to sticker shock. They leave because of affordability.

Affordability doesn't only refer to the price of a house. A balance must be struck between inflation, interest rates and wages. When interest rates rise or incomes don't keep up with rising costs the monthly payment is what drives buyers away, not the purchase price.

What does it really mean?

A $600,000.00 home with a lower rate of interest could cost less each month than a $500,000.00 home at higher rates.

Even if the price of your home remains stable, you can lose purchasing power overnight if interest rates continue to rise or inflation continues erode real wages.

Waiting for a "magic drop in price" can be counterproductive. It's not about timing the market perfectly, but rather about securing an affordable payment today. You can refinance at a later date if rates rise.

Locking in your home's current price will protect you against being priced out of the market tomorrow, especially if prices aren't expected to drop on other items such as gas and groceries.

It's not just about the numbers. You also need to make sure that the monthly payment fits your budget and lifestyle. You'll be in control of your investment long-term if you focus on this rather than waiting for headlines that tell you to buy.