Down payments reached a new high recently, as rising interest rates, elevated sales prices, and increased competition have led homebuyers to put more money down when purchasing a home. According to Realtor.com, buyers made an average down payment of 14.7% of the purchase price and a median down payment of $30,400 on primary residences in the third quarter of the year, surpassing the previous high of 14.1% in Q2 2022. In doing so, buyers paid 78.2% more as a down payment in Q3 2023 compared to Q1 2020, when the median down payment was $17,000.
IN THE TWIN CITIES REGION, FOR THE WEEK ENDING NOVEMBER 25:
- New Listings increased 5.6% to 490
- Pending Sales increased 4.4% to 540
- Inventory decreased 4.6% to 8,323
FOR THE MONTH OF OCTOBER:
- Median Sales Price increased 2.4% to $365,000
- Days on Market increased 2.8% to 37
- Percent of Original List Price Received increased 0.2% to 98.4%
- Months Supply of Homes For Sale increased 20.0% to 2.4
All comparisons are to 2022
November 30, 2023
Market sentiment has significantly shifted over the last month, leading to a continued decline in mortgage rates. The current trajectory of rates is an encouraging development for potential homebuyers, with purchase application activity recently rising to the same level as mid-September when rates were similar to today’s levels. The modest uptick in demand over the last month signals that there will likely be more competition in a market that remains starved for inventory.
Information provided by Freddie Mac.