![]() The largest increase in down payment by dollar amount, which takes into account both the increase in down payment and the median listing price increase, occurred in Montana in Q1 2022, where the typical down payment increased by $35,000, from $80,000 in Q1 2021 to $115,000 in Q1 2022. States with Largest Early Pandemic Down Payment Growth (%) State (to 15.6%) to a 3.6 percentage point increase in South Dakota (to 13.0%). In Q1 2022, down payments continued to increase as compared to Q1 2021, ranging from a 0.5 percentage point increase in D.C. Buyers in these higher-priced markets flocked to Boise as a scenic, affordable destination. area, and another 44.5% of views traffic was from pricy West region markets such as Los Angeles, San Francisco, Seattle, and Portland, among others. In Q1 2022, 11.9% of all views traffic to Boise City was from the D.C. Idaho, specifically the Boise City area, has drawn significant attention from higher priced markets. The increase in payment as a percent of price increased the most (3.8 percentage points) from 15.7% to 19.5% in Idaho in 2021. Median Down Payment as % of Purchase PriceĪt the state-level, the typical down payment increased both as a percent of purchase price and as a dollar amount in 2021. A larger percent down on typically higher priced homes means the buyers paid double the downpayment in the first quarter of 2022 ($28,000) as compared to Q1 2020 ($14,000). This down payment growth is especially significant when considering the 26.1% median listing price price growth in Q1 2022 compared to Q1 2020. By Q1 2022, buyers were paying an average 13.1% down for a primary residence, 1.4 percentage point increase over Q1 2021 and a 2.3 percentage point increase over Q1 2020. In 2021, this grew to an average 12.5% down payment, a 1.5 percentage point increase year-on-year. Finally, many home buyers were trading up in home size, taking advantage of increased home prices, and using earnings from their sale to invest in a new home.Īt the US-level, in 2019 and in 2020, buyers were paying an average 11.0% down payment on primary residences. Migration factored into this as well, as buyers in expensive locales bought homes in less expensive areas, enabling their money to go farther. ![]() Amidst new pandemic norms, most buyers in the US were spending considerably less money on travel and entertainment, leading to an increase in savings in 20. Looking at down payment data at the US-level, state-level, and metro-level, one trend stands out– buyers were putting more money down in 2021 and in Q1 2022 than in previous years. When including second homes and investment properties, which typically garner larger down payments, the average down payment is 14.5%. The survey results align with recent trends of actual mortgages, which show that in 2021, US buyers put down 12.3%, on average, when buying a primary residence. ![]() This is a reflection of the fact that for first-time buyers, the down payment is the biggest hurdle, and a major motivation for ’s Closing the Gap campaign, which will partner with the Homeownership Council of America (HCA) to provide down payment funding for first-time homebuyers and information about down payment assistance programs on site. A larger proportion of first time home buyers planned to put less than 10% down (41%) than of all buyers (26%).
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