Buyers Doubled Down Payments in Two Years

The average down payment in this year’s 1st quarter was $28K (13.1% of purchase price). Two years earlier, it was $14K (10.9% of purchase cost).

CHICAGO – Thanks to mounting home selling prices and consumer competitiveness, homebuyers introduced better down payments in the 1st quarter of 2022 to make their provides additional beautiful to sellers, offering about 2 times as significantly than they did two years ago, according to real estate agent.com® data.

Prospective buyers, on regular, provided a $28,000 down payment in the first quarter. In 2020, down payments averaged $14,000.

The percentage of down payments grew, much too. In the first quarter of 2020, consumers averaged a 10.9% down payment on the obtain cost compared to 13.1% in the to start with quarter of this year.

“During the pandemic, folks were being not spending as considerably on leisure and vacation and gained stimulus payments, which enabled them to put additional funds down on residences,” claims Hannah Jones, real estate agent.com financial details analyst.

A number of Florida metro places posted the largest will increase in down payments, led by Cape Coral. Down payments there rose by 174.7% from the 1st quarter of 2020 to the initial quarter of 2022. The typical buyer had a down payment of $42,000, in accordance to the realtor.com report.

Nonetheless, the premier all round down payment averages for a home had been in Silicon Valley. San Jose, Calif., averaged a 23.7% down payment of the invest in value of a dwelling – $290,000, according to the report.

Source: “Here’s How Much Cash Homebuyers Are Putting Down to Have Their Gives Recognized,” realtor.com® (May 11, 2022)

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