Press release
Back From the Brink: Home Buyers Retreat from Record-High Down Payments, According to Realtor.com®
Down payments reached an average of 14.5% and a median down payment amount of $30,300 in the third quarter of 2024 SANTA CLARA, Calif., Oct. 22, 2024
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[{"type":"text","content":"Down payments reached an average of 14.5% and a median down payment amount of $30,300 in the third quarter of 2024\nSANTA CLARA, Calif., Oct. 22, 2024 /PRNewswire/ -- Historically, down payments tend to hit their seasonal peak in the third quarter of the year; however, this year's down payment share peaked in the second quarter, according to the Realtor.com® bi-annual down payment report. Nationwide, down payments reached an average of 14.5% and a median down payment amount of $30,300, in the third quarter of 2024, down from the Q2 2024 historical peak of 14.9% and $32,700, and down year-over-year as easing mortgage rates improved affordability conditions.\n\"The annual decline in down payments is the result of less buyer competition in the third quarter. Easing demand and increasing inventory gave buyers more flexibility last quarter, which led to slightly lower down payments,\" said Hannah Jones, senior economic research analyst, Realtor.com®. \"The recent drop in mortgage rates could pave the way for more competition in the coming months, especially if rates fall further, but we haven't yet seen that reflected in home sales or down payment trends.\"\nPrimary Residence\nAvg Down Payment as % of Purchase Price\nMed. Down Payment ($ amt)\n2021 Q3\n2022 Q3\n2023 Q3\n2024 Q3\n2021 Q3\n2022 Q3\n2023 Q3\n2024 Q3\nU.S. \n12.5 %\n13.8 %\n14.7 %\n14.5 %\n$24,000\n$27,300\n$30,400\n$30,300\nHomebuyers Continue to Utilize Pandemic-Era SavingsLarge accumulations of pandemic savings are likely still helping some home buyers put down a large down payment, especially buyers who also have the benefit of record high existing home equity that can boost a down payment. The typical down payment dollar amount is more than double the pre-pandemic median and the typical down payment as a share of purchase price was more than 3 percentage points higher.\n\nLooking ForwardDown payments fell as both a share of purchase price and as a dollar amount in 2024 Q3 relative to one year prior and to the 2024 Q2 peak.\n\"It is too early to tell if this is the beginning of a lasting downward trend in down payments. While down payments have started to trend lower with lower demand, they remain historically high,\" said Jones. \"Easing mortgage rates may bring more buyers back into the market, potentially increasing competition – and down payments – once again if ...