Save $200,000 by Buying Now
The first Opportunity Cost Report has been published by Realtor.com, detailing the potential cost savings to be had by buying a home now rather than waiting until later. The cost of renting and current homeownership advantages for each market are two of the many factors that were analyzed in an attempt to put an exact dollar amount on long-term gains associated with immediate home purchase. The results were decidedly in favor of buying now, with the average buyer expected to reap savings totaling $217,726 over a 30-year period.
Although there is a huge amount of variation between different housing markets, the report found that buying now resulted in over $100,000 in financial benefit in 88% of metro areas. A number of elements fueled these gains, including projected increases in rent, interest rates, and home prices.
These are the 10 markets with the greatest potential gains in wealth:
1. Santa Cruz-Watsonville, Calif.: $1,006,413
2. Santa Rosa, Calif.: $883,068
3. San Jose-Sunnyvale-Santa Clara, Calif.: $782,144
4. Urban Honolulu, Hawaii: $714,748
5. Napa, Calif.: $712,192
6. Denver-Aurora-Lakewood, Colo.: $696,131
7. Salinas, Calif.: $553,158
8. San Diego-Carlsbad, Calif.: $518,382
9. San Luis Obispo-Paso Robles-Arroyo Grande, Calif.: $510,719
10. Fairbanks, Alaska.: $507,368
Although these findings show definite benefits for buying now, Jonathon Smoke, realtor.com's chief economist, warns that this report looks only at financial reasons to buy. Personal situations, such as life events and job security, should always be considered before buying a home. However, if you do buy a home in the immediate future, it seems that your bank account will thank you for it in the long run.
- Cheryl Bourland's blog
- Login or register to post comments
Google+

Information Deemed Reliable but Not Guaranteed. CENTURY 21 H.S.V. Realty is licensed in the state of Arkansas. CENTURY 21 and the CENTURY 21 Logo are registered service marks owned by Century 21 Real Estate LLC. H.S.V. Realty, Inc. fully supports the principles of the Fair Housing Act and the Equal Opportunity Act. Each franchise is independently owned and operated. Any services or products provided by independently owned and operated franchisees are not provided by, affiliated with or related to Century 21 Real Estate LLC nor any of its affiliated companies.