Housing is a hot topic these days, and it’s not hard to see why. The number of people looking for homes greatly outweighs what's available - meaning that those with hopes of getting into the market might have trouble finding the perfect home.  Two reasons why the housing supply today is so low. And what it means for you: 1.  New Home Construction is behind Schedule: The graph below shows new home construction for single-family homes over the past five decades. Builders have exceeded this long term average during each of their respective eras, with builders breaking records in terms on housing units completed per year. The result was an oversupply of houses (as shown by red marks) on the market, so home values declined. That was one of the factors that led to the housing crash back in 2008. 2. The Pandemic's Effect on the Housing Market The pandemic had a lasting impact on our sense of home. Home became the safe place to live, work, and excerise. When mortgage rates dropped to at or below 3%, buyers eagerly entered the market looking for a safe place of their own. At the same time, sellers hesitated to put their houses on the market as concerns about the pandemic mounted which resulted in low inventory. Basic Supply and Demand. They are more buyers wanting to purchase than seller looking to sell.  What Does This Mean for the Market This good news for 2022. Experts are predicting that more homes will become available soon thanks to sellers re-entering the market. Danielle Hale, Chief Economist atrealtor.com, shares this hope, but offers perspective: “We expect that we’ll start to see a turnaround and inventory will stabilize and start to go up a little bit in 2022. . . . But that means we’re looking at inventory levels of roughly half of what we saw before the pandemic. For buyers, the market is likely to continue to move fast. If you see a home you like, you want to jump on it right away.” If you’re planning to buy this year, the key to success will be patience given today’s low inventory. Let’s connect to discuss what’s happening in our area, what homes are available, and get you access to the MLS on our website www.revolhomes.com.