12% of First-Time Homebuyers Say Selling Crypto Helped Save for Down Payment

[Hydrogen]

12% of First-Time Homebuyers Say Selling Crypto Helped Save for Down Payment, Up From 5% in 2019

Digital currencies are becoming an increasingly common payment method as millennials rush the housing market.
One in nine first-time homebuyers (11.6%) surveyed in the fourth quarter said selling cryptocurrency helped them save for a down payment. That’s up from 8.8% in the third quarter of 2020 and 4.6% in the third quarter of 2019.



This is according to a Redfin-commissioned survey of 1,500 U.S. residents planning to buy or sell a home in the next 12 months. The survey, which was fielded to a representative sample of the American population, was conducted by research technology company Lucid from Dec. 10 to Dec. 13, 2021. Respondents were not made aware that Redfin was the sponsor of the research.

This report focuses on the 215 of those 1,500 respondents who answered the question “How did you accumulate the money you need for a down payment?”—a question we only posed to participants who indicated they were planning to buy their first home in the next year. The most common response was “saved directly from paychecks” (52%), while less common answers included “cash gift from family” (12%) and “pulled money out of a retirement fund early” (10%).

“With extra time and a lack of exciting ways to spend money, many people began trading cryptocurrencies during the pandemic,” said Redfin Chief Economist Daryl Fairweather. “Some of those investments went up in smoke, but others went ‘to the moon,’ or at least rose enough to help fund a down payment on a home.”

Bitcoin, the world’s largest digital currency, hit a record high of nearly $69,000 in November. Ether, the second most valuable cryptocurrency, also reached an all-time high, though both coins have since lost some of those gains. With surging home prices leading to larger down payments, some buyers are finding non-traditional ways to cover the cost and compete with other bidders.

“Crypto is one way for people without generational wealth to win a lottery ticket to the middle class,” Fairweather said.

Digital currencies are also likely on the rise as a payment method among homebuyers because millennials and Generation Z are taking up an increasing share of the U.S. housing market. Millennials, who own more cryptocurrency than other generations, now account for more than half of new mortgages.

https://www.redfin.com/news/real-estate-cryptocurrency-down-payments/

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Title was too long to fit, it should read:

12% of First-Time Homebuyers Say Selling Crypto Helped Save for Down Payment, Up From 5% in 2019

One great thing about this is, it shows how cryptocurrencies carry a potential for economic benefit. In terms of it making it easier for people to afford houses and real estate.

Its difficult to measure the impact that cryptocurrencies have about society as a whole. Its been generalized as being a creator of jobs and wealth. I have gone so far as to claim that it elevates our standard of living.

If nothing else, I hope we can all agree that crypto provides us with more opportunities and options than we would have without it. And that's always a good thing, am I right.

[paxmao]

Makes perfect sense if you think of it. Typically, first home buyers are young people, depending on the country, it can from 20 to 30 years old, perhaps more in some places. This is mostly a profile in which at least 12% of people would have some crypto even in the early stages. It is a quite interesting fact still, as it depicts how a deflationary asset is used for only the things that actually matter most to people and on which it makes sense to spend some of the holdings.

[Darker45]

It’s also worth pointing out, and the article has made it clear, that while others have made money out of their investments, others have also lost theirs. Other investments went to the moon while others went up in smoke. And that has always been the case with crypto investments. Sometimes the focus is only directed at those who made massive gains. Those who made massive losses are oftentimes canceled out especially by crypto fanatics.

It’s important that people will see the whole picture. Others have made downpayment for their homes while others have lost their rents. There are always two sides of a coin.

The article also compared crypto gains to winning lottery tickets. I guess it always falls on how much due diligence, caution, and risk-taking one is doing.

[Anonylz]

In any kind of investment (crypto or none crypto) some will make money and others will lose, the story is not always the same for everyone, however, those who have had the opportunity to make something out of their investment will want to loud it, I mean out of the millions of people invested in crypto, I strongly believe the number of happy investors are way higher than the unhappy ones, (my personal observation)  otherwise, we won't see more people coming in and the OG's would have jump ship long ago, but that's hasn't been the case,
So yeah, the article is not far from the truth, crypto investment has helped many to get things done much easier.

[xSkylarx]

Great. I am going to do the same

Wow! That is truly incredible. Although I believe that many of my friends have purchased a home and other luxury items as a result of the crypto, I had anticipated that they would be affected as well. However, when covid struck, they were earning more than before, leading them to purchase homes and high-end automobiles, which I find astounding. According to the survey, new homebuyers are earning bitcoin, and I would speculate that this is primarily millennials or young people who are making large sums of money as a result of cryptocurrency.

[Kakmakr]

I can tell from personal experience that 5 of the people I introduced to Bitcoin and Alt coins, have used their profits to pay for cars and also for a down payment on the deposit for a new house.    Two of these people have never owned a property before and the home loan does not cover the full cost of the property.

They told me that if it was not for the profits that they received from those Crypto currency trades, they probably would have never had accumulated enough money for those deposits. I am just glad that my advice and guidance made a difference in their lives and that it helped to put a roof over their heads. 

[pinggoki]

Makes perfect sense if you think of it. Typically, first home buyers are young people, depending on the country, it can from 20 to 30 years old, perhaps more in some places. This is mostly a profile in which at least 12% of people would have some crypto even in the early stages. It is a quite interesting fact still, as it depicts how a deflationary asset is used for only the things that actually matter most to people and on which it makes sense to spend some of the holdings.

I think that the depending on the country is the biggest factor here, you can't easily buy homes or even a land of your own in some countries as it's very expensive, hopefully that can happen to me too with crypto because right now, it's around 1.5 bitcoin and I can already have a decent home and land of my own in my country. Totally makes sense especially if you're one of the early crypto adopters and you've hit a gold mine when the crypto that you've invested gave you an astronomical profit.

[Poker Player]

Well, I would qualify and say that the savings they had invested in crypto helped them make the down payment. The savings was prior. It's not that selling crypto helped them save.

It’s important that people will see the whole picture. Others have made downpayment for their homes while others have lost their rents. There are always two sides of a coin.

Yes, because the survey was done near ATHs. It seems that there were people who took advantage to make profits and take advantage to make the down payment, but if it had been at the bottom of a bear market the story would be different.

[bittraffic]

Well, I would qualify and say that the savings they had invested in crypto helped them make the down payment. The savings was prior. It's not that selling crypto helped them save.

It’s important that people will see the whole picture. Others have made downpayment for their homes while others have lost their rents. There are always two sides of a coin.

Yes, because the survey was done near ATHs. It seems that there were people who took advantage to make profits and take advantage to make the down payment, but if it had been at the bottom of a bear market the story would be different.

They sell to make money and that's a good decision to make but then they did a downpayment for a house. Selling thier crypto for the downpayment sounds not good for me. It will be good if they rent out these homes to someone with profit but if they have to continue paying for the monthly mortgage, it wouldn't look good in the next years.

I have first-hand experience in this which is why I set up my house for Airbnb to earn from it. If I have to buy a house, I'd really like to buy it in one full payment because it's a constant pressure on you and your wife.

[passwordnow]

Yup, we all do agree and you're right with that. Crypto has helped a lot of us from being low financially up to buying things that we need like what these people have bought, houses, cars, building up their businesses, and other things for the greater good.
It is no doubt that being in crypto and being wise when to sell contributed not just for each of us but also in the economy where we're living. This is why the government should see the positivity that it brings to each individual that's benefiting from owning cryptos.

[so98nn]

Just loving the whole concept of this. It is exactly what we do one way or other because I have myself sold bitcoin which I earned from the lets say forum, artwork selling and mining etc in the situations of emergency and thus made my way out of it.

No wonder these peeps sold it for something bigger like paying their down payments of new houses. They might have had good opportunities in the crypto field, earned handsome money from the bitcoin trades and what not. Its really a good sign actually as they got enormous support from the bitcoin side.

Imagine these would be the peeps who will never leave the crypto as it was there for them at the right time and place. 

[kryptqnick]

I'm glad the number's up, but the difference between two quarters of the same year is small and, IMO, not enough to show the long-term dynamics. Isn't it curious, by the way, that they only show Q3 of 2019, Q3 of 2020 and Q4 of 2020? How about other quarters of these years? Or would showing them portray a very different picture? Also, 1 in 9 isn't that much, not to mention that it doesn't even mean that for 1 in 9 crypto was the decisive factor, right? I mean, that person who sold cryptos could have also sold something else, and considered both as significant contributing factors to making the first payment. Also, the whole dataset was 1,500 people, only 215 of whom answered the question about the money for a down payment. I'm not saying that there's no tendency to use cryptos more, I'm just not sure about this particular research and its significance.

[dothebeats]

I can actually see myself doing this in the future, although I would have to admit that buying a house is out of the question for me, but perhaps on other 'important' purchases I would sell my bitcoins just to see it happen.

Also, this is fairly logical considering that a lot of young folks are already engaged in cryptocurrencies. This just goes to show how opportunities are being presented on people who use crypto, or those who know something about it.

The way I see it, more and more people in the future would probably thank bitcoin and crypto for simply being around when they are still trying to earn for their first car, or for the downpayment of their first house, especially on the youth who will benefit hugely from crypto in the future.

[Husires]

It is good to see some have benefited from the recent bitcoin bump, and because it is only a successful investment and not long-term thinking, but it is better than keeping cash, which has become more dangerous than acquiring Bitcoin.
Questionnaires are inaccurate, may be biased and cannot be generalized to be imposed on a particular community or country, but they prove that Bitcoin has a use and has helped some in facilitating their lives.
The word helped them may mean a simple 1% assistance or a payment of approximately 60%, not the full payments

[hatshepsut93]

I am one of those people, and Bitcoin gains were responsible for the majority of the payment. I can easily say that Bitcoin greatly and positively affected my life, and I wish the same to new investors. But people should be cautious and have some patience, because trying to get rich quick with things like altcoins or leveraged trading usually ends with losing all your investment. Waiting 2-3 years to achieve your dream is far better than gambling with your dream here and now.

[Wexnident]

And it also didn't help some of them. It shows how Crypto has the way to help a small amount increase to an amount that can help you, but it can also help you make it disappear in an instant. Well, it's actually just any type of investment out there, just that I think crypto is much more accessible to most, and that with its volatility, can pretty much help you profit quickly (or not) depending on the market season. I myself have profited well at times in a short span.

Haven't exactly done anything with it yet though, still planning on keeping it as Bitcoin and hodling it, don't have much to buy/invest (and I can't exactly spend it on anything with its current amount anyway).

[hyudien]

One great thing about this is, it shows how cryptocurrencies carry a potential for economic benefit. In terms of it making it easier for people to afford houses and real estate.

Its difficult to measure the impact that cryptocurrencies have about society as a whole. Its been generalized as being a creator of jobs and wealth. I have gone so far as to claim that it elevates our standard of living.

If nothing else, I hope we can all agree that crypto provides us with more opportunities and options than we would have without it. And that's always a good thing, am I right.

You are right, I have felt the benefits of cryptocurrency in 2017 from Bitcoin. I was able to buy a number of private homes as well as a number of homes that could be rented out. All generated from cryptocurrencies, there is no denying it. Maybe I'm one of those people out there who have experienced what's really going on in crypto.

Crypto not only gives us more opportunities but gives us a path of economic prosperity that we have never experienced from government programs in the country where I live.

[el kaka22]

I would say it is not really that shocking, people did made some great profits this year so the increase in 2021 definitely makes sense because of all that extra income. Plus, the real estate investment is the most logical investment in the entire world if you do not own a house. Think about it, which one would you rather, keep paying rent, or no rent? It is not risky neither, you buy a house, you go in, and you start living there, end of story.

If you are investing into a house for price then you may have a problem but this isn't even like that, this is about how you just live in there so the value doesn't even matter. So, I would say that it is definitely a good investment and all these extra crypto profits in 2021 found a great home to go to.

[paxmao]

It’s also worth pointing out, and the article has made it clear, that while others have made money out of their investments, others have also lost theirs. Other investments went to the moon while others went up in smoke. ...

In fact it is well known that some people killed themselves both financially and, in the most unfortunate cases, physically. There has been a huge crowd of people that did not really understand crypto, or better said, they did not have a hint about crypto nor life in general, and all fell easily for the scams and the promised land of money for nothing. Too bad, once more where there is opportunity, there is risk.

[kaya11]

I can tell from personal experience that 5 of the people I introduced to Bitcoin and Alt coins, have used their profits to pay for cars and also for a down payment on the deposit for a new house.    Two of these people have never owned a property before and the home loan does not cover the full cost of the property.

They told me that if it was not for the profits that they received from those Crypto currency trades, they probably would have never had accumulated enough money for those deposits. I am just glad that my advice and guidance made a difference in their lives and that it helped to put a roof over their heads. 

It really help a lot in my case, got my first car, got also my first home, even though I am paying mortgage I am still thankful. Crypto investments helped me a lot. It is better than nothing, better than being broke and homeless, just how many people are wishing to be on my spot. All I have to do is steadily pay off my debts and live an easy life, in touch with crypto and maybe next project is buy a small farm to grow my own foods.