High home prices are forcing buyers to pony up more for down payments, according to Redfin.
Americans are paying more in down payments as elevated home prices are causing prospective homebuyers to have to come up with more upfront cash to purchase properties, a Redfin analysis shows.House prices are nearly 7 percent higher in February compared to what they were a year ago, which has contributed to the typical buyer putting down 15 percent of a purchase price compared to 10 percent the year prior.
'Some of those people may not have the income to qualify for a large loan, but the equity they've built allows them to make a bigger down payment so that they can purchase the house they want with the smaller loan that they do qualify for,' Redfin points out.Cash is increasingly becoming kingOne other development that is shaping the housing market is buyers are more and more purchasing homes in all cash transactions.More than a third of purchases, 34.
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