Today's Market News:
Smaller Down Payment? No Problem.
Homebuyers in almost every state are making smaller down payments, due to cooling price growth and fewer bidding wars. The typical U.S. homebuyer's down payment fell to $64,000 in March 2026, down 1.5% year-over-year.
Down payment percentages were highest in three California metros: San Jose, San Francisco, and Anaheim (25% each). Percentages were lowest in Virginia Beach, Virginia (2%) and Detroit, Michigan (5%), which are both considered relatively affordable markets.
The buyer-friendly market is reducing pressure on house hunters to make large down payments to strengthen offers in bidding wars. Buyers now have flexibility to keep more cash in their pockets to pay for moving expenses, renovations, and/or future monthly payments.
If you have prospective buyers with concerns or questions about down payments, refer them to me. I can introduce them to mortgages with low down payments and share details of state and county down payment assistance programs.
The data in this article is from a Redfin analysis of county records across 40 of the most populous U.S. metropolitan areas. March 2026 is the most recent month for which data is available. Loan type data is limited to home purchases for which buyers took out a mortgage.1
Less House, More Home: Steering Buyers to Smaller Homes
Today's buyers often begin shopping for their dream home before they realize they can't afford it. This means that, in order to buy now, they may need to downsize their dreams. However, this doesn't have to be a negative, especially when you remind them of the benefits of going smaller.
Buyers who want to check out new construction may find that smaller is the current trend. According to the latest US Census data, the median square footage of new single-family homes has been falling for over a decade. In addition, builders are currently willing to negotiate with these buyers, offering price cuts and incentives.
Another option: a condominium unit or townhome. NAR data shows that the median price for condos is less than the median for single-family homes in every region. Condo and townhome developments often feature walking trails, pools, fitness centers, co-working spaces, and outdoor gathering areas that appeal to all ages of buyers.
Presenting these features to your budget-minded buyers can make a condo or townhome purchase feel like a major lifestyle upgrade instead of a compromise.2
Investor Purchases Hit Six-Year Low
Investing in real estate has been popular for years, with highly secure returns. But recently, investor buyers are getting cold feet.
Investor home purchases dropped 6% year-over-year during the first quarter of 2026, which is the lowest level since 2020. The investors' market share added up to 19% during this time, which is largely unchanged from 2025.
The main reason for this decline: elevated housing costs and mortgage interest rates squeezing potential returns. Home prices are also going up in most of the country, so it's more expensive for investors to buy properties, and also reduces the profitability of rental properties. Investors who "fix and flip" are also seeing fewer profits.
Investor gains are no longer what they were during the pandemic years. The median capital gain for a home sold by an investor was $196,618 in Q1 2026, which wasn't nearly as attractive as the gains commonly seen during 2020 and 2021.3
Managing Co-Borrowers Just Got Easier
With property prices still high, more buyers are taking a team approach, buying with friends or family members. A survey conducted earlier this year found that about 60% of renters would consider co-buying with friends, with interest strongest among younger generations.
Recently, several tech platforms designed to assist co-borrowers have appeared. One of these — Pairgap — was created by a New York broker who decided to take the co-borrower route herself as an investor. The Pairgap platform helps investors and potential co-borrowers combine their income and assets to buy properties, especially those in high-cost areas.
Pairgap and other technology platforms do more than bring co-borrowers together. These can help potential buyers find others, assess their compatibility, and structure formal agreements — described as a real estate prenup — to prevent expensive misunderstandings.
If you're working with prospects thinking of buying as co-borrowers, refer them to me so I can walk them through their financing options.4
Be a Video Star with Instagram's Teleprompter Tool
Video creators can roll scripts across their screens when recording, so they won't have to look down at notes or memorize several minutes' worth of lines.
You'll need the Instagram Edits: Video Editor app to use the teleprompter. After you upload your video script, you'll see it displayed as a rolling text as you record. You'll be able to face the camera directly, just like you're talking to your audience in real life.5
Sources: 1redfin.com, 2keepingcurrentmatters.com, 3rismedia.com, 4nar.realtor, 5socialmediatoday.com
Recent Comments