Source: https://www.corelogic.com/intelligence/average-total-down-payment-reached-an-all-time-high-in-2022/
Average Total Down Payment Reached an All-Time High in 2022
Year-over-year rise in average down payment size was highest for middle-tier homes
Quick Takes:
The average sums that buyers are parting with for a down payment are at an all-time high for all homes purchased in the United States. After falling during the housing crisis of the Great Recession (2008-2009), the average down payment amount has steadily increased. However, since the onset of the pandemic in early 2020, the average down payment sum surged, reaching a record high in May 2022.
Home prices play a significant part in the size of down payments, and with increases in home prices over the last few years, average down payments have followed suit.
Figure 1 shows that the average down payment amount has increased for all sales price tiers, according to CoreLogic public records data. In June, the average down payment amount for low-tier homes (those priced at less than 75% of the median sales price) was about $30,186, up from $26,314 for the same month in 2021.
Similarly, Figure 2 shows the average down payment percentage by sales price tiers. This June, the average down payment percentage for low-tier homes was about 12% of the sales price.
The average down payment amount for middle-tier homes (those priced between 75% and 125% of the median sales price) was $63,071 in June, up from $52,862 for the same month in the previous year. The average down payment percentage for middle-tier homes was about 14% of the home sales price in June.
Similarly, the average down payment for high-tier homes (those priced at more than 125% of the median sales price) was $152,022 in June, up from $134,535 in the same period of 2021. The average down payment percentage for high-tier homes was about 21% in June. Mortgages for high-tier homes are mostly high-balance loans or jumbo loans, which generally require a larger down payment.
Year-over-year rises in average down payment amounts were highest for middle-tier homes (19%), followed by low-tier homes (15%). In contrast, the year-over-year increase was just 13% for high-tier homes.
Figure 1: Average Down Payment Amount by Sale Price Tiers
Figure 2: Average Down Payment Percentage By Sale Price Tiers
To learn more about the data behind this article and what CoreLogic has to offer, visit https://www.corelogic.com/.
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