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Buying a home is still a challenge and the first step to overcome is the initial payment, which has increased almost double for those looking to buy an estate.
The factors that have driven the cost of the down payments at these levels are already known: high house prices, low market inventory , and high mortgage rates.
The data gives a better idea of what buyers are facing with down payments that have nearly doubled in value.
Only in 2020, the initial payments were increased 10.9%, one year later, in 2021, his amount rose again to 12.3% and in the first quarter so far this year, the increase has been 15.one%.
These increases in dollars have represented an additional challenge for homebuyers, mainly for those looking to buy a home for the first time.
The initial payment almost doubled in value in the first quarter of 2022, when arriving at $45,000 dollars on average, from the $13,000 average dollars paid in 2020.
But the increase in initial payments is not only associated with the factors that maintain the real estate market due to the clouds, but with the competitiveness that the same buyers demand to be able to keep a home.
For example, some families achieved savings during the pandemic, which are available given for an initial something, there is greater competition among buyers for a market with little supply, the search for a cheaper market and the capital they obtain from the sale of their first home.
“As buyers settled in settlements of remote work, many chose to leave the high-priced urban centers for less expensive premises and, as a result, were able to pay more as a down payment
in these relatively inexpensive markets,” said Hannah Jones, economic data analyst for Realtor.com in a report for Yahoo Money.
To these savings, in some cases, must be added the dollars that second-time buyers manage to accumulate for the sale of your current home, also appreciated by the same market.
That capital has allowed them do be more competitive in the current market and offer higher initial payments, which necessarily makes the scenario more complicated for first-time buyers.
Now, the specialist explains that not all states have the same levels of down payments.
For example, markets such as Vermont, New Hampshire, South Dakota, Idaho, Montana, and Utah were the first to experienced the increases, since they are states that received workers who left the big cities.
A clear example is Montana, also within the previous group, where the largest increase in the initial payment was recorded, which went from $80,000 dollars to $115,000 dollars, during the first quarter of the year.
However, these increases did not leave aside the metropolitan areas considered affordable. El Paso, Texas, grew 59.5% in their average down payment, while, in Augusta , Georgia, the increase was 45.9%, according to data from Realtor.com .
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