Hey Friends!
I’ve got a whopping 4 fun facts for you today. Hope you have a great weekend and welcome to September!
Blessings!
Andrew
Fun Fact 1:
Millennials’ share of U.S. real estate wealth has climbed from roughly 14% in 2021 to 22% today, narrowing the gap with older generations.
Source: CRE Daily (Hat tip to the legendary Trevor Shakiba for this one)
Fun Fact 2:
10 years ago, the 30-year mortgage rate was 3.4% and the median existing home price in the U.S. was $243k. Today, the 30-year mortgage rate is 6.7% and the median existing home price is $434k.
The result: a $38k increase in the required down payment (assuming 20% down) and 160% increase in the monthly mortgage payment (from $862 to $2,240). I’m no expert, but incomes are not up anywhere near 160% in the past decade, leading to a collapse in affordability.
Source: Charlie Bilello
Fun Fact 3:
There is some good news: supply is slowly coming back to the market. There are now over 1.1 million homes for sale in the US, the highest inventory since 2019.
Source: FRED; Charlie Bilello
Fun Fact 4:
The US National Debt is now $40 trillion. How did we get here? Some thoughts from Charlie: “Washington’s solution to every problem remains the same: Borrow more. Spend more. Let our children and grandchildren deal with the consequences. There is simply no fiscal discipline in sight. Unfortunately, it will take a crisis before anything changes.”
Source: Charlie Bilello
Quote I’m pondering:
“Many receive advice, only the wise profit from it.” -Harper Lee
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Disclaimer: All information provided is for educational purposes only and does not constitute investment, legal or tax advice, an offer to buy or sell any security, or to buy or sell real estate property. Read our full disclosures HERE.