During Q4 2024, down payments grew to more than $30,000 for the average priced home.
Homebuyers should plan to save a bit more before entering the housing market this year. According to a recent report from real estate marketing platform Realtor.com, average down payments increased during Q4 2024, amounting to 14.4% of the total purchase price. This is down by 0.1 of a percentage point from the previous quarter but up 0.2 of a percentage point year-over-year. The typical down payment during Q4 2024 reached $30,250, which was about $1,000 higher than during the same time a year ago. Overall, 2024 saw some of the highest down payments since data was first collected in 2013, both as a dollar amount and as a share of the total home purchase price.
"Higher mortgage rates and higher home prices influence this trend as more financially prepared, high-earning buyers claim homes while entry-level and lower-earning buyers continue to sit out," says Realtor.com senior economic research analyst Hannah Jones.
"Additionally, high mortgage rates incentivize buyers to put down more as a down payment as a means of limiting loan size and thereby interest payments."Read more
