Delaying Homeownership Could Be Costly Decision

Delaying homeownership could be costly decision

CHICAGO – June 4, 2015 – Potential homebuyers who don't take advantage of current interest rates and property prices risk losing out on thousands of dollars, according to realtor.com. Its Opportunity Cost Report notes that residential price appreciation is dropping, rents are climbing and higher mortgage rates are looming.

Realtor.com analyzed the 382 largest markets in the nation, estimating that the wealth an average buyer would accumulate over a 30-year period based on today's dollars is $217,726. In 88 percent of metropolitan statistical areas, buying a home produces a financial benefit of at least $100,000 over 30 years.

However, low inventory is keeping many would-be buyers on the sidelines, says realtor.com chief economist Jonathan Smoke.

"Current market conditions give buyers the opportunity to build substantial wealth in the long term, compared with renters and later buyers, in advance of the projected increase in mortgage rates and continuing price appreciation," he adds.

Source: Inman News (05/28/15) Swinderman, Amy

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Author: Kathy Toonder
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Dated: June 4th 2015
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