SEATTLE – (BUSINESS WIRE) – (NASDAQ: RDFN) – One in nine first-time homebuyers (11.6%) surveyed in the fourth quarter said that selling cryptocurrency had helped them save for the down payment, according to a new report from Redfin ( redfin.com), the technology-driven real estate brokerage. This represents an increase of 8.8% in the third quarter of 2020 and of 4.6% in the third quarter of 2019.
“With extra time and a lack of interesting ways to spend money, many people started trading cryptocurrencies during the pandemic, ”said Redfin Chief Economist Daryl Fairweather. “Some of those investments vanished, but others went ‘to the moon,’ or at least increased enough to help finance a down payment on a house. ”
The report is based on a survey commissioned by Redfin of 1,500 US residents planning to buy or sell a home in the next 12 months, sent to a representative sample of the US population and conducted by the technology company. research Lucid from December 10 to December. February 13, 2021.
The report focuses on 215 of the 1,500 respondents who answered the question “How did you accumulate the money you need for the down payment? “That Redfin only posed for participants who indicated they planned to buy their first home next year. The most common response was” saved directly from paychecks “(52%), while less common responses included” cash gift of the family “(12%) and”he took money out of a retirement fund early ”(10%).
Bitcoin, the world’s largest digital currency, hit a record high of nearly $ 69,000 in November. Ether, the second most valuable cryptocurrency, also hit an all-time high, though both coins have since lost some of those gains. With rising home prices leading to larger down payments, some buyers are finding non-traditional ways to cover the cost and compete with other bidders.
“Cryptocurrencies are a way for people without generational wealth to win a lottery ticket for the middle class, ”Fairweather said.
Digital currencies are also likely to rise as a payment method among home buyers because millennials and Gen Z are taking an increasing share of the US housing market. Millennials, who own more crypto than other generations, they now account for more than half of new mortgages.
To view the full report, including charts and methodology, visit: https://www.redfin.com/news/real-estate-cryptocurrency-down-payments
Redfin (www.redfin.com) is a technology-driven real estate company. We help people find a place to live with brokerage services, instant home buying (iBuying), rentals, loans, title insurance and renovations. We sell houses for more money and charge half the fee. We also run the number one real estate brokerage site in the country. Our homebuying clients see homes first with on-demand tours, and our loan and title services help them close quickly. Customers selling a home can accept an instant cash offer from Redfin or have our renovation team fix their home to sell for the best price. Our rental business enables millions of people across the country to find apartments and houses for rent. Since its launch in 2006, we have saved clients more than $ 1 billion in commissions. We serve more than 100 markets in the US and Canada and employ more than 6,000 people.
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