The typical down payment during the fourth quarter of 2024 was $30,250, according to a new report from Realtor.com. The level was slightly below the third quarter’s level but roughly $3,000 higher than one year prior.
“As inventory recovers, the housing market is very slowly tilting toward more balance between buyers and sellers – but down payments are still high, hitting an annual record in 2024,” said Danielle Hale, chief economist at Realtor.com. “Today’s home sales are skewed toward higher-end homes, and this means larger down payments from more financially prepared, high-earning buyers as entry-level and lower-earning buyers sit out. Additionally, higher mortgage rates give homebuyers good reason to limit their loan size and interest costs, by putting more down upfront.”
Realtor.com determined that buyers paid 14.4% as a share of purchase price and $29,900 on average in 2024, up from 14.2% and $27,200 in 2023.
“As long as the market remains tilted toward buyers who are less sensitive to home prices and mortgage rates, down payments are likely to remain relatively high,” said Hale.
