Large Home Buyer Deposits in South Florida Reveal Competitive Market
Down payments are one of the biggest challenges for first-time home buyers. But in South Florida, buyers are putting down nearly 20 percent of the average home price, indicating a highly competitive market, according to Law.com.
A shortage of South Florida homes is already increasing demand, and down payment amounts appear to be increasing along with it. In the third quarter of 2017, South Floridians put down an average of $71,261 (19.8 percent) of the average home price. Compared with year-over-year data, buyers put down $66,502 (19.3 percent) in the third quarter of 2016.
The median deposits were significantly less compared with the averages. Data shows that South Floridians put down a median of $27,600 (9.6 percent). Nationally, the median deposit was $20,000 (7.6 percent) — marking the highest median since the year 2000, according to ATTOM Data Solutions, which collected the data using public mortgages and deeds filed in the third quarter for condos and single-family homes. Per Law.com, “South Florida seems to be more competitive than the nation as a whole.”
ATTOM senior vice president of communications Daren Blomquist told Law that buyers in South Florida have to put money down to be competitive. Moreover, lenders are focused on serious buyers, many of whom are willing to put more money down up front, Blomquist said.
The data also underscores the growing condo inventory: deposits decreased in the third quarter compared with the second quarter, bucking a national trend that showed an overall increase in deposits for the same period.