It may sound counter-intuitive but in some good news for real estate, the percentage of down payments has dropped. Good news because it could signal the return of the first-time homebuyer.
According to a new report from RealtyTrac, down payments for single family homes, condos and townhouses was down to 14.8 percent in the first quarter of 2015, the lowest number since 2012 and down from 15.5 percent last year.
FHA loans were down to 2.9 percent, while conventional were down to 18.4 percent. FHA loans also increased their share of overall loans, from 21 percent in January of this year to 25 percent in March.
Daren Blomquist, a vice president at RealtyTrac, says "down payment trends in the first quarter indicate that first-time homebuyers are finally starting to come out of the woodwork, albeit gradually."
First-time homebuyers are often the first link in a chain of move-up buyers. Their return could signal the beginning of demand rippling up the chain.
For more on the good news, head over to Chicago Agent Magazine here.