Summary
Homebuyers in the U.S. are making smaller down payments compared to last year, as more people look for cheaper homes amid high mortgage rates and uncertain economic times. A report from Redfin found that down payments dropped in December across major U.S. cities, as buyers gain more leverage in negotiations due to an increase in available homes.
Key Facts
- The typical homebuyer's down payment dropped by 1.5% in December compared to the previous year.
- The average down payment in December was $64,000, about 15.2% of the home price, down from 16.7% a year before.
- Homebuyers are seeking more affordable homes because of high prices and mortgage rates.
- Sellers are seeing more homes unsold on the market, making them less selective about down payment size.
- The largest decrease in median down payment was in Orlando, Florida, with a 23.9% drop.
- The highest down payments were recorded in California cities like San Francisco and San Jose.
- Virginia Beach, Virginia, had the lowest average down payment at $8,700.
