Zillow: 2018 Buyers Will Need to Save More

Nov 09, 2017

The median home will be worth $6,275 more a year from now, according to new data released by Zillow, which also forecasts that the average buyer will need to save an additional $105 a month, or $1,260 total over the next year, to account for the future costs of a 20 percent downpayment.

In the nation’s more expensive housing markets, the costs will be much higher. Zillow noted that home values in San Jose are expected to rise as much as $35,934 by this time next year, thus requiring the average buyer to have $7,188 more for a downpayment on the median home than they would today—which would be achieved by putting away an additional $599 a month just to keep up with home value appreciation, let alone whatever else is needed for the downpayment itself.

"Sky-high rents and rising home prices are putting first-time buyers in a bit of a catch-22," said Svenja Gudell, Zillow Chief Economist. "Buying now with a low downpayment can be riskier, and the offer may not be considered as competitive by the seller. However, a renter who saves for another year to reach a larger downpayment may find that the home they love today is outside their budget a year from now. For those considering buying in the next year, getting into the market today may make more financial sense than they think."

About the author

Phil Hall

Link copied

Published

Nov 09, 2017

People On The Move

Ginnie Mae President Alanna McCargo Announces Resignation

McCargo was first woman and first woman of color at the helm of Ginnie Mae.

The U.S. Department of Housing and Urban Development (HUD) today announced that Alanna McCargo, president of the Government National Mortgage Association (Ginnie Mae), will resign, effective May 3, 2024. McCargo has served in the Biden-Harris Administration since January ...

People On The Move

Christensen, Andrus Added At CE Class Leader

Maximum Acceleration hires mortgage exec. as education director, adds banking manager

Brandon Christensen, a longtime mortgage broker and trainer, has been named Director of Education and National Instructor for Maximum Acceleration LLC, a leading NMLS-approved course provider for mortgage pre-license and continuing education. "Having Brandon join our amaz...