• Danny Lee, CFP®, CRPC®

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.

Source: https://fred.stlouisfed.org/series/MSACSR

2. Historically low mortgage interest rates. Cheap to borrow money.

Source: https://www.macrotrends.net/2604/30-year-fixed-mortgage-rate-chart

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.

Source: https://www.statista.com/statistics/246268/personal-savings-rate-in-the-united-states-by-month/

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?

Source: https://techcrunch.com/2020/11/14/as-covid-surges-what-can-data-tell-us-about-airbnbs-recovery/

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…

Source: https://www.nasdaq.com/market-activity/commodities/lbs

WEBSITE DISCLOSURE: The blog content of Modern Millennial Wealth LLC (“MMW”) is provided for informational purposes only and is not intended to constitute financial or investment advice. At times, MMW blogs will share personal experiences and that information shared is intended to be general in nature and should not be relied upon as personal financial advice. You should not rely upon any information contained on this blog for financial or investment advice. Reading MMW blog(s) is not intended to and shall not create an advisory relationship between you and Modern Millennial Wealth LLC. Neither Danny Lee, nor Modern Millennial Wealth LLC makes any representation or guarantee about the accuracy of the information contained in this blog or links to other websites. Neither Danny Lee, Modern Millennial Wealth LLC., nor anyone acting on their behalf, will be liable under any circumstances for damages of any kind

HYPERLINK DISCLOSURE: The information being provided is strictly as a courtesy/convenience. When you link to any of the web sites provided here, you are leaving this website. We make no representation as to the completeness or accuracy of information provided at these websites. Modern Millennial Wealth LLC is not liable for any direct or indirect technical or system issues or any consequences arising out of your access to or your use of third-party technology, web sites, information and programs made available through this website. When you access one of these web sites, you are leaving our web site and assume total responsibility and risk for use of the web sites you are visiting. Modern Millennial Wealth LLC does not make any representations or warranties as to the accuracy, timeliness, suitability, completeness, or relevance of any information prepared by any unaffiliated third party, whether linked to Modern Millennial Wealth LLC’s web site or incorporated herein, and takes no responsibility thereof.

61 views0 comments

Recent Posts

See All