Aspiring homeowners find that saving for a down payment is one of the biggest hurdles stopping them from buying their dream home, or any home, for that matter, according to a new report. As home prices continue to grow — the median-priced home is now about $400,000 — home buyers today are seeing the amount of money they need to put down on a home rise steadily.
Consequently, 38% of first-time home buyers said that saving for a down payment was the most difficult step in the home buying process, according a new report from National Association of Realtors. Related: Home buyers are making record down payments. But there are ways to put down as little as 1%. Among first-time buyers, the top three reasons they gave for being unable to save for a down payment were: high monthly rent or mortgage payment (56%); student-loan debt (45%); and auto-loan debt (38%), according to the NAR’s 2023 Profile of Home Buyers & Sellers, released Monday. The report found that the typical down payment for first-time buyers was 8%. That’s roughly $32,000 for a median-priced home of $400,000. The median price is the price in the middle of the price ladder; half of homes are cheaper, half are more expensive. Repeat buyers didn’t face as much of a struggle when coming up with a down payment, with just 7% indicating it was difficult to do so, according to the NAR survey. Repeat buyers have the additional benefit of tapping into the proceeds from the sale of the …
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