Oct 30, 2023 - Real Estate

How long it takes to breakeven on a home in Raleigh

Data: Zillow; Note: Calculations assume typical increases in home values, 3% closing costs paid at purchase and 1% home maintenance fees, 6% closing costs, and 6% agent fees paid at sale; Chart: Erin Davis/Axios Visuals
Data: Zillow; Note: Calculations assume typical increases in home values, 3% closing costs paid at purchase and 1% home maintenance fees, 6% closing costs, and 6% agent fees paid at sale; Chart: Erin Davis/Axios Visuals

As mortgage rates get closer to 8%, it will take a lot longer for new homeowners to breakeven on their purchase, per Zillow data exclusively shared with Axios' Brianna Crane.

Driving the news: In the Raleigh metro area it could take the typical house more than 15 years to breakeven at current rates with a 20% down payment.

Why it matters: That's far longer than the traditional advice that you will recover purchase costs if you stay in your home at least five years.

Zoom out: It's also longer than the national average of 11.3 years for those putting down 20%.

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%.

Go deeper: The problem with America's high homeownership rate

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