Dallas homebuyers need a bigger down payment than most

As has been the case over the past year and beyond, to say this is a sellers real estate market is an understatement. While conditions have cooled from blazing to hot, the fact remains that those lacking deep pockets and a streak of fierce competition are unable to purchase residential property. .

And it’s even more brutal in Dallas, where house hunters need more money than in most other cities in America.

Typically, you’re putting in about 20% of the home’s purchase price when you bid on a home, but that number keeps increasing, according to researchers at Realtor.com who place Dallas at # 10 on the list. the most recent of the metropolitan areas where you will need the biggest down payment if you hope to have a chance in your dream home.

“In competitive markets, having a large down payment can help your offer stand out. Salespeople like them because they’re more likely to close, ”says Danielle Hale, chief economist at Realtor.com. “That doesn’t mean everyone can do it. Typically, you see them among older homebuyers who have more equity from a previous home than they can use.

In Dallas, where the median price of a home is $ 396,000 and the average down payment is 19.4%, many buyers come from more expensive subways in California or New York and have that extra cash on hand. selling their home, according to Realtor. Clare Trapasso from .com. Jobs attract a lot of people to the region, as companies such as Toyota have established themselves in recent years, the analyst notes.

Since the area is so competitive, sellers like to see larger down payments, said real estate broker partner DeLisa Rose, of Dallas’s eXp Realty. Buyers also like to avoid paying private mortgage insurance, or PMI, if they don’t have down payments of at least 20% of the purchase price.

“The more a buyer poses, the stronger they appear on paper,” Rose told Trapasso.

Cities in Florida, California, Idaho, Colorado, Hawaii, Massachusetts, New Mexico and Oregon join us in the top 10 for high down payments.

Lower down payments are more likely to lower it in McAllen, Texas, as well as cities in the Carolinas, Louisiana, Tennessee, and Mississippi.


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About Matthew R. Dailey

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