Following the COVID-19 pandemic, the median down payment for homes has risen to 15%, up from 10%. In April 2023, down payments dropped after home sale prices decreased, but were back on the rise with a 4% annual increase in 2024. The slowing appreciation has shifted market power toward buyers, prompting sellers to negotiate and accept lower down payments. FHA loans usage has increased significantly, especially in certain metro areas. Conventional loans remain dominant, while cash purchases have seen a slight decrease.
The latest report from Redfin reveals that the median down payment has increased to 15%, reflecting ongoing changes in the housing market post-COVID.
As home-price growth slows, more sellers are willing to negotiate terms and accept lower down payments, marking a shift in favor of homebuyers.
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