The average buyer who purchased a home last year made a 14 percent down payment, or about $32,141, according to a new RealtyTrac analysis of 1.5 million purchase loans across 386 counties nationwide.
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"This analysis shows that first-time home buyers have a better shot at buying a home in low-priced markets, not just because of the lower price point but because, on average, buyers are putting down just 12 percent in those markets compared to 24 percent in high-priced markets," says Daren Blomquist, vice president at RealtyTrac.
In the highest-priced markets, down payments averaged 24 percent — about $138,547. On the other hand, down payments averaged 12 percent in the lowest-priced markets, or $8,239.
Top Markets for First-Time Buyers
RealtyTrac identified the following 10 markets, which have an average down-payment percentage below the national average of 14 percent and have had an increase in the Millennial population of 20 percent or more:
- Montgomery, Tenn.: 11% average down payment
- Davidson, Tenn.: 13%
- Durham, N.C.: 13%
- Philadelphia: 13%
- Polk, Iowa: 12%
- Prince William, Va.: 11%
- Franklin, Ohio: 13%
- Cumberland, N.C.: 9%
- Pulaski, Ark.: 12%
- Columbia, Ga.: 12%