January weather conditions were unseasonably cold and filled with precipitation in most areas of the country as workplaces and schools shuttered. While employees worked remotely with the warmth of their laptops and children built igloos in the ice, savvy first-time buyers saw an opportunity in the frigid landscape.

For the last seven consecutive months, housing affordability has relatively improved. Sellers who placed their homes on the market had a strong motivating factor to make a move. Historically, sellers move when life changes happen, and one cannot time a family change or a new job to the whims of Mother Nature.

Looking at last month’s REALTORS® Confidence Index, there was an uptick in first-time buyers. Mortgage interest rates have declined incrementally since August 2025, improving affordability conditions for buyers. First-time buyers typically perform better in the winter months, as families with school-aged children, who may compete in the summer, step back from the market. Inventory is still limited, so first-time buyers may have to search for a home that has been overlooked or may need DIY upgrades. Successful first-time buyers are typically the buyers willing to make these compromises to start earning housing equity.

Encouraging in this month’s REALTORS® Confidence Index data was the drop in the number of buyers waiving contingencies. NAR started collecting monthly data on buyers who waived inspection and appraisal contingencies in April of 2021. At a peak, in June 2022, 30% of home buyers waived the inspection contingency, and 32% waived the appraisal contingency. The spring and early summer of 2022 saw fierce competition for homes as mortgage interest rates began to climb. In April of 2022, 61% of homes sold above the list price, and the typical seller received 5.5 offers. As a first-time buyer, the chance of a successful contract was arduous. Last month, only 12% of buyers waived their inspection contingency, a new low in the dataset since we began collecting it. Additionally, only 15% of buyers waived their appraisal contingency, matching a low seen in 2023.

Every market provides opportunities for buyers or sellers. This last month gave first-time buyers a chance to enter the market if they were willing to lace up their snow boots, chip the ice off their windshields, and safely find a home to tour.