The average home buyer had more capital to put down on a home in 2014, according to an analysis of nearly 20 million home sales. The average down payment made by home buyers in the United States was $58,496. On average, buyers were able to put down 15.4% of the purchase price. Having buyers across the country with more money to put down in 2014 shows the positive turn both the economy and housing market have taken in the past few years.
The average down payment has been between 13 and 15% over the past decade and only 2013 and 2014 have risen above that standard.
Only a quarter of home buyers with conventional loans put down less than 3% on their home. That same number was nearly at 37% in 2006, just before the housing crisis. Most of the buyers putting little money down in 2014 were first time home buyers. The average sale price on homes receiving less than a 3% down payment was $190,304.
When buyers have more money to spend, that’s great news for everyone involved in the housing market. Buyers can manage their mortgage payments easier while sellers can sometimes get higher prices. Healthy activity from both sides will lead to a normalized growing market, shielding buyers and sellers from the pitfalls of a volatile market.
Source: http://realtormag.realtor.org/daily-news/2015/02/19/home-buyers-put-down-more-money-in-2014
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