According to Zillow, saving for a down payment is a moving target for many first-time buyers, especially in pricey markets like Seattle and San Jose, where home values are expected to rise as much as $36,000 over the next year.
For future U.S. homebuyers wondering when to stop saving and get into the housing market, the math is clear: the sooner the better. With home values forecasted to rise in every major U.S. metro over the next year, a 20 percent down payment on the median-priced home today will cost thousands of dollars more just one year from now.
Nationally, the median home will be worth $6,275 more a year from now, according to Zillow’s home value forecasts. That means the average U.S. buyer will need to save an additional $105 a month – $1,260 total over the next year – just to account for how much more a 20 percent down payment will cost a year from now.