Oct 31, 2023 - Real Estate
Breaking even on your Seattle-area home could take 11 years
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Get comfy, Seattle-area homeowners. It can take nearly 11 years to break even on your purchase, per Zillow data exclusively shared with Axios.
Why it matters: That's how long you have to stay in your house before you can sell and make a profit.
Context: Historically, experts have said you need to stay in your home at least five years to break even.
- But with mortgage rates inching toward 8%, new homeowners will need to stay put longer to avoid going underwater.
Between the lines: 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%.
- For people in the Seattle metro area who put down only 3%, the time needed to break even is estimated at 10.8 years.
The bright side: Seattle-area homebuyers who put down 20% can recoup their costs in 8.8 years, 2.5 years faster than the national estimate.