Who watches those HGTV Shows where buyers go around with one of those home renovation experts and they say So we settle on the little brown house and you paid 120,000 and put 80,000 in renovations and your all in at $200,000 and we all know they put a downpayment less then 10% in many cases. Those of us who live in Dallas Texas, Boulder Colorado, Barnstable MA, Pheonix Arizona, and Santa Cruz CA just to name a few the downpayment will be more will need to be on the extra-large size to snag the home of your dreams. If your wondering why that is covered as well.
- The Villages Florida – The average down payment is 27.1% and the median list price is $366,950
- Santa Cruz California – TheAverage downpayment is 25% and the median list price is $1,200,000
- C0eur D’ Alena Idaho- The Average Downpayment is 22.5% and the Median Home list Price is $749,950
- Prescott Arizona- The Average Downpayment is 21.4% and the Median Home list price is $569,750
- Kahului Hawaii- The average Downpayment is 20.7% and the Median Home List price is $1,149,000
- Boulder Colorado- The average Downpayment is 20.6% and the Median Home List price is $749,950
- Barnstable Town– Massachusetts Average Downpayment is 20.6% and the Median Home List price is $699,500
- Santa Fe New Mexico- The Average Downpayment is 20.1% and the median home list price is $702,750
- Bend Oregon- The Average Downpayment is 19.5% and the Average list price is $649,000
- Dallas Texas- The Average Downpayment is 19.5% and the Average list price is $396,480
Trend 1) Retirees have a nest egg.
The Village is a popular retirement community in Florida, and those buyers put higher down payments on their forever homes so they have lower mortgage payments. The same story could be said for Prescott Arizona and Santa Fe New Mexico and Bend Oregon.
Trend 2) Expensive homes require higher down payments
Places like Santa Cruz California, Boulder Colorado, Dallas Texas and Kahului Hawaii . Sellers have multiple offers often on these homes so if you are a buyer you need to put the most money down to win the home of your dreams. The buyer could be coming from a state like New York or California where they have more cash available from the sale of their home.
Trend 3) The area might be in a pricey vacation area so cash might be king or queen more.
Areas like Coeur D’ Alena Idaho, Kahului Hawaii, and Barnstable Town MA. These areas are some of the priciest retreats, where second or third homes are the norm. Covid 19 pandemic gave these areas a boost with high-paid executives riding out the pandemic in their vacation homes. During 2020 and 2021 you saw large numbers of people leaving the Boston and New York metro areas to their second homes outside the city. Locals typically put down 10% or less on their homes, but often they are buying in less expensive areas of real estate in the $400,000-$600,000. The out of towners will spend $600,000 and up.
Realtor.com reported that Luxury Portfolio International predicts it will be another good year for sellers. However, they will see less bidding wars but strong demand for their home. Interest rates creeping up and inflation concerns will push the first-time home buyer out or they will have less wiggle room in negotiating. If your thinking about buying in any of these areas let’s talk and develop a plan. If you wondering are there places where I can spend less and put down less? The answer is yes. I will cover that next in my next blog entry.