Here are several tips and tricks to find the funds you need to buy a house. Saving for a down payment can be overwhelming since it’s a considerable cost. Source: 2023 NAR Home Buyers and Sellers Generational Trends Here is a breakdown by age group, with older home buyers having more capital to put down. Approximately 94% of this age group obtained financing while having a median down payment of 8%. NAR reports that 78% of all home buyers financed their home acquisition, with buyers between ages 24 to 32 being the most likely to get a mortgage. Additionally, the age of home buyers also plays a factor, as older buyers tend to have more money. The average down payment for a house differs widely by state due to different home prices. However, the share of first-time buyers fell to 22% in 2022, dropping from 34% in 2021. The National Association of Realtors (NAR) states that the average down payment on a house for first-time home buyers is 6% versus 17% for repeat buyers in 2022. Average Down Payment for First-Time Home Buyers While this housing market sector isn’t as prevalent as primary residences, the higher amount signals that buyers with disposable income can put more money down.

The average down payment for a second home or investment property is 27% of the purchase price, according to ’s 2023 Down Payment Report. Down Payments for Second Homes Are Higher Two potential reasons for the higher median deposit are that buyers have more purchasing power and also want a lower monthly payment due to higher mortgage rates. Western states like Idaho and Arizona are experiencing the sharpest declines due to the rapid price run-up from 2020 to 2023. Generally speaking, northeastern and midwest states such as Wyoming and Connecticut have witnessed the highest year-over-year increases, according to ’s report. Conversely, some of the priciest markets see declining down payment amounts as the crunch in home affordability continues. However, several of the most affordable state-level and local markets have seen an increase in median down payments as a percentage of the sales price.

The median sales price decreased by 7.4% from $449,300 to $416,100 over a similar period. Home buyers are posting smaller down payments in most housing markets since home prices peaked in the fourth quarter of 2022 and are decreasing through 2023 year-to-date.įor instance, the average median down payment was $34,248 in Q2 2023, down 3.3% year-over-year from $35,410. has the highest down payment percentage amount at 20.4%, with a $100,800 median down payment due to the area’s expensive housing market. In the second quarter of 2023, Louisiana home buyers made the lowest average down payment of 9.2% at $6,729, while Washington, D.C. The nationwide average down payment for a house is 14.4%-an average median of $34,248-during the second quarter of 2023, reports Hannah Jones, an economic data analyst at. What Is the Average Down Payment on a House?

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