Buyers are lowering down payments thanks to inflation, higher home selling prices and sellers just being more willing to flex and negotiate. At $42,000, it's the lowest average down payment in over two years.
The typical U.S. homebuyer’s down payment fell 10% year-to-year in January. At a median of $42,375 – it’s the lowest level in nearly two years, according to a report from Redfin.
The median down payment is down 35% from the peak it reached in June but still up more than 30% from pre-pandemic levels.
In January, the median down payment equaled 10% of the purchase price, down from 13.6% a year earlier and the pandemic-era peak of 17.5% in May. The last time down-payment percentages were this low was early 2021 before the pandemic homebuying boom drove buyers to put more money down to make their offers more attractive.
Gary
Gary McAdams, PA
Realtor/Notary Public
Barbara Anderson Realty You
Key West, Florida
