How Big of a Down Payment Do I Need to Buy a Home in Tri-Cities?

How Big of a Down Payment Do I Need to Buy a Home in Tri-Cities?

My wife and I are in a tough spot in our lives where we want to downsize, but the cost of real estate has escalated in the Tri-Cities so buying another home might be costly.

We bought in 2016, and looking back, if I had spent an extra $25,000 I could've had an even better home with resale value but I never imagined that prices would escalate as they have.

When we bought, our real estate agent said the sweet spot was homes between $160,000-$250,000 but those days are long according to new statistics from the Tri-Cities Association of Realtors.

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The average sold cost for a home in the Tri-Cities which includes outlying areas in October 2024 is $459,600. The average cost for a home is $430,000 with an average of 315 listings sold in October 2024 alone.

Traditionally, buyers were expected to put down 20% of the home's purchase price. While this can feel daunting, especially when prices in desirable areas like Southridge or Badger Mountain are considered, it's important to know there are alternatives designed to fit various financial situations.

Programs such as FHA loans allow first-time buyers to make down payments as low as 3.5%, opening doors to many who might otherwise be sidelined by traditional expectations.

But let's go back to the 20% down plan. The average sold price is $460K x 20% = $92,000.

That's a big chunk of change!

It's not surprising that the average age of first-time home buyers has risen from 28 to 38.

So don't fret, there are still plenty of ways to get into a home in the Tri-Cities, talk with a real estate agent and if you are a veteran, you might even qualify for a zero-down loan.

I just know my wife and I are going to keep looking until we find another dream house here in the Tri-Cities.

Good luck with your search!