With home prices rising, home buyers are bringing higher down payments to make their offers more attractive to sellers. Buyers are offering about twice as much cash for down payments as they did two years ago, according to realtor.com\u00ae data.<\/p>\n\n\n\n
Buyers, on average, offered a $28,000 down payment in the first quarter. In 2020, down payments averaged averaged $14,000.<\/p>\n\n\n\n
The percentage of down payments has grown, too. In the first quarter of 2020, buyers averaged a 10.9% down payment on the purchase price, compared to 13.1% in the first quarter of this year.<\/p>\n\n\n\n
Median home list prices rose 26.1% over that same period from 2020 to 2022, according to realtor.com\u00ae.<\/p>\n\n\n\n
\u201cDuring the pandemic, people were not spending as much on entertainment and travel and received stimulus payments, which enabled them to put more cash down on homes,\u201d says Hannah Jones, realtor.com\u00ae economic data analyst.<\/p>\n\n\n\n
Several Florida metro areas posted the largest increases in down payments, led by Cape Coral. Down payments there rose by 174.7% from the first quarter of 2021 to the first quarter of 2022. The average buyer had a down payment of $42,000, according to the realtor.com\u00ae report.<\/p>\n\n\n\n
However, the largest overall down payment averages for a home were in Silicon Valley\u2019s San Jose, Calif., at 23.7% of the price of a home\u2014$290,000, according to the report.<\/p>\n\n\n\n
\u00a9National Association of REALTORS\u00ae
Reprinted with permission<\/p>\n","protected":false},"excerpt":{"rendered":"
With home prices rising, home buyers are bringing higher down payments to make their offers more attractive to sellers. Buyers are offering about twice as much cash for down payments as they did two years ago, according to realtor.com\u00ae data. Buyers, on average, offered a $28,000 down payment in the first quarter. In 2020, down … <\/p>\n