New study concludes buying may beat renting for first time in years – and Seattle is THE place to buy!
Seattle is the best place to buy a home right now.
Researchers Eli Beracha and Ken Johnson made that conclusion after analyzing data for 23 different Metropolitan Statistical Areas (MSAs).
The study used an eight-year holding period for comparative purposes and factored in costs associated with homeownership, tax benefits and home price appreciation, and considered returns on similar risk portfolios. The net result is that home price gains would need to average only 3.25% annually to beat renting, according to Beracha and Johnson.
After crunching the numbers, Beracha and Johnson concluded buying a home may beat renting for the first time in several years.
Two key factors prompted their conclusion. First, rents are expected to rise, perhaps as much as 7 percent in each of the next two years. Second, home prices have dropped enough — about 32 percent from their 2006 peak – to create a buying opportunity.