Median downpayments increase
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Market Data
Thursday, December 21, 2017
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The median downpayment for single family homes and condos purchased with financing in the third quarter increased by more than double digits, according to a report from ATTOM Data Solutions.
ATTOM said the median downpayment for single family homes and condos purchased with financing in the third quarter was $20,000, up 10 percent compared with $18,161 median downpayment in the previous quarter. Year-over-year, median downpayments were up 26 percent compared with the $14,400 one year ago.
The average downpayment of $20,000 was 7.6 percent of the median sales price of $263,000 for homes financed in the third quarter, up from 7.1 percent in the previous quarter and up from 6.1 percent in last year’s third quarter.
“Buying a home has become a full-contact sport in many markets across the country, and buyers with the beefiest downpayments — not to mention all-cash buyers — are often able to muscle out those with scrawnier savings,” ATTOM Senior Vice President Daren Blomquist said in a release. “Despite the increasingly competitive nature of homebuying, the number of residential property purchase loans nationwide increased to a 10-year high in the third quarter.”
According to the report, the average median downpayment in the third quarter climbed above $50,000 in 12 markets. Those markets were San Jose, Calif. ($247,000); San Francisco ($170,000); Los Angeles ($118,000); Oxnard-Thousand Oaks-Ventura, Calif. ($105,000); and Boulder, Colo. ($99,900).
Other markets with median downpayments above $50,000 in the third quarter were San Diego; New York; Fort Collins, Colo.; Bridgeport, Conn.; Boston; Seattle; Washington, D.C. and Naples, Fla.
“Across Southern California factors such as low available listing inventory have resulted in many consumers turning to cash or leveraging investment accounts for cash as alternative methods for funding home ownership and beating out competitors for acceptance of their purchase offers in a highly competitive market,” said Michael Mahon president of First Team Real Estate in Irvine, Calif.
For the quarter, there were approximately 2.4 million loans secured by residential property, ATTOM found. Of those loan originations, nearly 1.1 million were purchase loans (1,011,144), up 8 percent from the previous quarter and up 7 percent from a year ago.
A total of 981,773 refinance loans secured by residential property were originated in the third quarter, up 28 percent from the previous quarter but still down 19 percent from a year ago, ATTOM said.
The metropolitan areas with the biggest increases in purchases loans were Raleigh, N.C. (up 55 percent); New York (up 39 percent); Roanoke, Va. (up 39 percent); Honolulu (up 38 percent); and Little Rock, Ark. (up 34 percent).
Areas that had third-quarter decreases in residential property purchase loan originations included Houston (down 10 percent); Miami (down 6 percent); Atlanta (down 15 percent); Boston (down 7 percent); and Detroit (down 7 percent).
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