Don’t believe everything you think you know. Like believing the winters in Montana are so cold, you won’t want to go outside ever. With the bright sunshine and a bit of acclimation, you would probably enjoy the sparkling snow and pristine air for a few minutes. So, what do you believe about the cost of down payments? You might be surprised to hear the truth about how much people are really paying for down payments in the U.S.
Now that more homes are available for purchase, it’s time to consider saving for a down payment, but how much should you save? In a recent survey by the National Association of RealtorsⓇ (NAR), 35% of consumers believe they need to save 16-20% for a down payment, while 10% believe they need more than 20%. Saving that much for a down payment might discourage you from buying a house, but I’ve good news for you!
Since 2018, first-time homebuyers have only paid ______% for down payments.
Since 2018, first-time homebuyers have only paid 6-7% for down payments. How about that!? In many cases, I was surprised and excited to hear that we don’t have to worry about saving 20% for a down payment on a house. If you want to stretch your money even further, why now buy a house in an affordable metro area where down payments are below 9%? Check out the savings you can enjoy when purchasing your first home in these metro areas:
Fayetteville, North Carolina:
Average down payment: 4.3%
Median home price: $239,000
Monroe, Louisiana
Average down payment: 4.7%
Median home price: $192,000
Topeka, Kansas
Average down payment: 7.1%
Median home price: $159,777
Hattiesburg, Mississippi
Average down payment: 4.3%
Median home price: $220,000
Mobile, Alabama
Average down payment: 7.6%
Median home price: $249,000
Florence, South Carolina
Average down payment: 8.0%
Median home price: $237,000
Odessa, Texas
Average down payment: 8.1%
Median home price: $275,000
Springfield, Ohio
Average down payment: 8.4%
Median home price: $157,000
Johnstown, Pennsylvania
Average down payment: 8.6%
Median home price: $145,000
Saginaw, Michigan
Average down payment: 8.7%
Median home price: $160,000
If you want to buy your first home and save on the down payment, consider living in the abovementioned areas. Talk to your real estate agent about housing and down payment options in your area, so you know how much you need to save toward your first home. If you don’t have a local real estate agent to help you, please let us know at info@reazo.com. We hope you find the house of your dreams!
NOTE: Most median housing prices listed above are from Realtor.com.
