With median home prices climbing through the end of 2024 and mortgage rates near 7%, new data shows that homebuyers ended the year digging deeper into their pockets for down payments. According to data from Redfin, the typical down payment has risen both in terms of the dollar amount people put down as well as a percentage of the purchase price compared to a year ago. (The online brokerage compared the most recently available figures, which date from December, with the same time period a year earlier.) Redfin found that the typical homebuyer now puts down $63,188. In dollar terms, this is an increase of 7.5% from a year earlier, when the typical homebuyer put down $58,800. In percentage terms, that amount equals a little over 16% of the purchase price, which is an increase over the 15% buyers typically put down a year ago. Housing experts have held out hope that the meteoric rise in home prices is slowing, although not reversing. With supply still falling short of demand in many major metro areas, buyers have little choice but to pay up. In other locations, though, Redfin's analysis suggests that buyers are beginning to acquire more leverage when it comes to negotiation. https://lnkd.in/eaFAr-NJ
