The average down payment for homes in California fell in the third quarter as buyers faced higher rates and high prices. A new report from Realtor.com shows the average down payment in California slipped to $51,000—16.3% of the purchase price—down 5.6% (about $3,000) from a year earlier and 0.6 percentage points lower by share.
Nationally, buyers put down 14.4% on average in Q3, a 0.1-point decline from a year ago. The national median down payment held near $30,400. By region, the Northeast posted the highest down-payment share at 18.2%, followed by the Midwest at 14.5% and the South at 12.5%. All four regions edged lower year over year, with the South and the West each down 0.6 percentage points.
In dollar terms, the Northeast’s median down payment rose 5.6% to about $63,000, reflecting higher prices and tight competition. The South recorded the lowest median at $22,800, down 4.4% from a year earlier.
“High interest rates and elevated home prices have kept many buyers on the sidelines, slowing the climb in down payments,” said Hannah Jones, senior economic research analyst at Realtor.com. The report adds that the West and South are loosening somewhat as supply improves and demand cools, while the Northeast and Midwest face sharper competition amid fewer new homes and tighter inventory.
Experts noted the result is a market marked by mild overall cooling but deeper regional divergence. For California, the latest move confirms a pullback in upfront cash even as prices remain high—suggesting more buyers are waiting for better affordability before re-entering the market. The California home down payment trend will remain sensitive to interest-rate paths and local inventory in the months ahead.
BY HOONSIK WOO [woo.hoonsik@koreadaily.com]
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