Many experts agree that owning a home is one of the best ways to build wealth. According to economic data analysis by realtor.com, postponing a home purchase in the current housing market could cost a person thousands of dollars depending on where they buy. With home price appreciation and mortgage interest rates expected to rise over the coming months, purchasing a home now could result in an estimated financial benefit of $217,726 over a 30-year period. Conversely, waiting to buy 1 year from now could be a loss of $18,672 in savings and a $54,879 loss in savings if one waited 3 years to buy.
Move, Inc.’s Chief Economist, Jonathan Smoke, stated, “We’re at a critical juncture: Rents, home prices, and mortgage rates are all expected to rise significantly over the next several years. That means the cost of delaying homeownership will go up even more sharply, if you wait three years or even one. It’s much like the decision to start contributing to a 401(k). Delay contributing, and you lose out on the compounding returns.” Read the full article at http://www.realtor.com/news/trends/financial-benefit-buying-a-home-now/.