Down payments reached a new high recently, as rising interest rates, elevated sales prices, and increased competition have led homebuyers to put more money down when purchasing a home. According to Realtor®.com, buyers made an average down payment of 14.7% of the purchase price and a median down payment of $30,400 on primary residences in the third quarter of the year, surpassing the previous high of 14.1% in Q2 2022. In doing so, buyers paid 78.2% more as a down payment in Q3 2023 compared to Q1 2020, when the median down payment was $17,000.
In the Twin Cities region, for the week ending November 25:
• New Listings increased 5.6% to 490
• Pending Sales increased 4.4% to 540
• Inventory decreased 4.6% to 8,323
For the month of October:
• Median Sales Price increased 2.4% to $365,000
• Days on Market increased 2.8% to 37
• Percent of Original List Price Received increased 0.2% to 98.4%
• Months Supply of Homes For Sale increased 20.0% to 2.4