With home values projected to rise
A year from now, the median U.S. home will be worth $6,275 more.
In hot markets such as San Jose, Calif., home values will increase another $35,934, the largest rise in dollar volume of all major cities, followed by Washington, D.C., where prices will cost about $23,651 more next year.
When looking at year-over-year change, home prices in
"Sky-high rents and rising home prices are putting first-time buyers in a bit of a Catch-22. Buying now with a low down payment can be riskier, and the offer may not be considered as competitive by the seller. However, a renter who saves for another year to reach a larger down payment may find that the home they love today is outside their budget a year from now," said Svenja Gudell, Zillow's chief economist, in a press release.
"For those considering buying in the next year, getting into the market today may make more financial sense than they think."
Currently, more than half of first-time buyers, or 59%, are putting less than 20% down on a home purchase.