It will take Phoenix homeowners 10-plus years to break even
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Get comfy, Phoenix homeowners. It could take more than a decade to break even on your purchase, per Zillow data exclusively shared with Axios.
Why it matters: That's longer than the traditional advice to stay in your home at least five years to recover purchase costs.
- With mortgage rates topping 8%, new homeowners will need to stay put longer to avoid going underwater.
Flashback: This is a departure from the reality just a few years ago when low interest rates and rapidly rising prices allowed local homeowners to turn a profit on their investment within a few years.
By the numbers: Our break-even timeline of 10 to 12 years is still below the national average of 11 to 13.5 years, depending on down payment.
How it works: Zillow used typical price increases for each market to forecast the value of a median home and compare it to equity based on down payments of 3% to 20%.