Does Zillow’s Gloomy Article on Buying Now Pencil Out?

Zillow’s recent gloomy attention grabbing headline stating “If you buy now, it can take 13.5 years to make a profit on your home sale” has been creating quite a buzz with various media outlets. I thought I’d run some scenarios to compare.
I’ve based my comparison using as much as Zillow’s criteria as possible; including:

  • Market conditions from July 2023 (rates were trending towards 7% per Freddie Mac’s PMMS report) with an average value from Zillow of $820,000 for Seattle.
  • Actual costs and market conditions may vary, and it is essential for buyers and sellers to consult with professionals and assess their specific circumstances when making financial decisions.
  • NOTE: I’m basing the credit scores at ranging between 720-739.

The article defines breaking even as: This analysis examines the estimated point at which a home seller makes a profit or does not incur a loss when selling their home considering all the costs put into it, from purchase costs, mortgage interest, and selling costs.

What it is not being considered is the cost of renting and the benefit of paying down your mortgage balance (amortization benefits).

I found it interesting that based on Zillow’s reporting, you only take off 2 years on “making a profit” from using 3 to 20 percent down payment but the opportunity cost is huge to wait that long.

You can check out my full report here: Zillow’s Math – Does Buying a Home Now Make Sense? (   My report includes supporting documentation which, in my opinion, shows that home buyers in our area would profit quite nicely after 10 years of owning a home (10-11 years is the time for the Seattle area per Zillow’s article).

If you’re considering buying a home or would like me to provide you with the reports I used based on your financial criteria and location, please contact me!


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