6 Charts Showing Why Home Buying Sucks in 2021
Updated: Apr 21
Buying a home in 2021 sucks! A few of my friends have been in the market to buy their first time home and have been in bidding wars or in situations where they couldn’t even compete. Offers of $10k-$200k over asking price... The feelings they shared were exhausting, defeating, and pissed off. As a first time home buyer, how to you compete with such offers like that. 6 charts to visualize why housing market sucks for buyers:
1. Supply…is low. As seen below, beginning of 2021, we saw one of the lowest monthly supply of houses in the United States.
2. Historically low mortgage interest rates. Cheap to borrow money.
3. Low supply + low interest rates + home demand = rising prices
Source: https://fred.stlouisfed.org/series/MSPUS 4.More money in the bank to spend. The personal savings rate spiked during the pandemic.
5. "Airbnb will need millions of new hosts to meet demand as travel picks up again, CEO Brian Chesky told CNBC." Investor buying properties for Airbnb?
6. Can't build (most) homes without lumber. Price of lumber are at all time highs, $1260. In early 2020, it was roughly $303. That's a 315% increase…
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