The Blubber

Per Go Banking Rates

For an average homebuyer in Austin, Texas, to save up the 10% needed for a downpayment, it would now take longer before coming up with the amount. In 2019, they only needed to save up for eight years, but last year, the number of years they needed to save up increased to 13, per Bloomberg, citing Zillow data.

Go Banking Rates shared how home downpayment prices in Austin, Texas, are now nearly identical to those in New York City. Homebuyers would have to save nearly as long to place a downpayment on a property in Austin as they would in NYC.

Austin was one of the cities that greatly boosted real estate prices during the pandemic as more people started venturing to other states in search of cheaper housing. In Austin, the 10% downpayment would be at $56,653, a little below NYC's $61,074 downpayment.

Zillow considered how long it would take for an average person saving 5% of their monthly earnings to come up with the needed downpayment for a median-priced home in 2022. Skylar Olsen, the chief economist of Zillow, gave a statement to Bloomberg regarding the prices.

Olsen: “You can see that it’s gotten harder and longer to save for a down payment over time,”

Despite it being harder for people to come up with the 10% downpayment, In December of last year, Austin home values had a monthly decline of 4.2% compared to the 0.2% national average decline.

Nearing the end of 2022, 95% of millennials shared how they wanted to buy a home but that they were afraid that they couldn't afford to do so. During the time of the report, 30-year fixed mortgage rates reached 6.47%.

The US housing market dropped by a whopping $2.3 trillion in the second half of 2022, which was just 0.9% less than the 2008 housing crisis decline.

See flow at unusualwhales.com/flow.

Other News:

• 95% of Millennials Want to Buy a Home but Fear They Can't Afford It
• US housing market dropped by $2.3 trillion in the 2nd half of 2022, just 0.9% less than the 2008 housing crisis decline

Resources:

Go Banking Rates

Bloomberg