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

Courts

Former Better.com Executive Ends Lawsuit Against The Company

After a series of legal setbacks, Sarah Pierce dismisses remaining claims of retaliation and defamation.

Sarah Pierce, a former executive at Better.com, has voluntarily dismissed with prejudice her remaining allegations against the digital nonbank lender, its CEO Vishal Garg, and the company's General Counsel, Nicholas Calamari. A court filing dated April 19, 2024 indicates ...

Analysis and Data

Northeast Sees Highest Price Gains, Lagging Inventory

Meanwhile, Texas and Florida see slower home price appreciation due to inventory gains, CoreLogic reports.

The Northeast led in annual home price growth across the U.S., according to CoreLogic’s latest Home Price Insights from March. Nationwide, home prices increased by 5.3% compared to March 2023, and grew by 1.2% from the previous month, February 2024. “Home prices increa...