Homebuyers who purchases during the pandemic were prepared to—or able to—put down more cash in an effort to close on their dream homes.
According to new data out from Redfin, down payments doubled between July 2019 and July 2022. Earlier this Summer, the typical homebuyer put down $62,500, up 13.6 percent from a year earlier. However, compared to three years prior, buyers averaged putting down just $32,917.
The combination of increased down payments and monthly mortgage payments near all-time highs made it more difficult for prospective buyers to afford homes.
The typical buyer’s down payment in July was equal to 15.2 percent of the purchase price, essentially unchanged from 15 percent a year earlier but up from 10 percent before the pandemic.
Redfin, however, points out that down payments have declined slightly in recent months after peaking at $66,000 in May and June.