Down payments up 10% for Metro Detroit homebuyers
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The median down payment for buying a house grew slower in the last year in Metro Detroit than it did nationwide.
Why it matters: Our median down payment in February was $10,611, up 10.4% year over year.
- The national median was $55,640, a 24% increase year over year.
The big picture: With high mortgage rates, homebuyers are reaching deeper into their pockets on the front end to soften their monthly payments, Redfin researchers say.
- The median U.S. down payment in February was 15% of the purchase price, up from 10% a year earlier, per the report.
- In Metro Detroit, the down payment was just 5% of the purchase price.
Reality check: First-time buyers still struggle to get their feet in the door.
- First-timers don't have equity from selling a home to boost their down payment, and they're often competing against cash buyers, according to Redfin.
- In Metro Detroit, nearly 41% of buyers paid with cash.
The intrigue: For Metro Detroiters, it's hard to imagine a median down payment like that of Seattle's, which was a whopping $165,400 in February, up 31% year over year.
- Of the 40 most populous metro regions studied by Redfin, Detroit had the second-lowest median down payment, after Virginia Beach. Its down payment percentage was also the second lowest.
- Yet, Metro Detroit had the ninth-highest percentage of home purchases made with cash.
Between the lines: Those who put at least 20% down can avoid the added cost of private mortgage insurance.
Go deeper: What people are sacrificing to afford housing.