If you're considering moving right now, you're probably wondering, "Why is it so dang tough to find a house to buy?" And I get it, it can be frustrating. But here's the thing, waiting around for more options might not be your best bet. Let me break it down for you.

You know what's been a real problem for years? The fact that there just aren't enough homes for sale. And it's not just something we're dealing with today, it's been an ongoing struggle. So, what are the reasons behind this shortage? Well, there are both long-term and short-term factors to consider. Let's dive in and take a closer look at them.

Underbuilding Is a Long-Standing Problem

You know, one of the main reasons why there's a shortage of houses for sale is because builders just haven't been building enough homes in the last few years. Take a look at the graph below that shows the number of new single-family homes constructed over the past fifty years. It even includes the average number of housing units completed over the long term.

So basically, for the past 14 years, builders haven't been building enough homes to keep up with the normal rate (which is shown in red). This lack of building has caused a big shortage of available homes. Even though new home construction is now back on track and meeting the normal rate, it's not going to fix the inventory issue overnight. It's gonna take some time to sort it out in the long run.

Today’s Mortgage Rates Create a Lock-In Effect

So, what's happening in today's real estate market that's making it tough to find available homes? Well, there are a couple of things going on. First, we have what's called the mortgage rate lock-in effect. This basically means that some homeowners are hesitant to sell because they don't want to get stuck with a higher mortgage rate on their new home. They'd rather stay put and keep the lower rate they currently have. If you take a look at the chart below, it gives you an idea of just how many homeowners could be facing this dilemma.

Here's something important to bear in mind: your needs are just as crucial as the financial side of your move.

Misinformation in the Media Is Creating Unnecessary Fear

You know what's really causing a shortage of houses to buy? It's all this fear that the media has been spreading. I'm sure you've seen those scary headlines about a housing crash or prices dropping like crazy. But guess what? None of that actually happened. Those stories might have made you doubt yourself and think it's safer to wait until things settle down. Jason Lewris, the guy who started Parcl, agrees with me on this. He says that the media has stirred up unnecessary panic, and it's keeping people from buying homes.

““In the absence of trustworthy, up-to-date information, real estate decisions are increasingly being driven by fear, uncertainty, and doubt.””

— Jason Lewris, Co-Founder and Chief Data Officer at Parcl

Inventory is getting even smaller because some folks who were thinking about moving aren't sure anymore. Don't let the negative news scare you though, because things aren't as bad as they seem. If you work with a real estate agent, they can give you the real scoop and help you make a smart decision.

How This Impacts You

If you're curious about how the current low inventory situation impacts you, it really comes down to whether you're looking to sell, buy a home, or maybe both.

• For Buyers: So here's the deal - a few homes are up for grabs right now. That means you gotta think long and hard about all your choices, like different neighborhoods and types of houses. Lucky for you, there are real estate pros who've got your back. They'll show you all the options out there and help you find the perfect home for you. And if you need to widen your search, they can guide you through that too. Consider them your personal coaches in this house-hunting game!

• For Sellers: The current housing market is facing a low inventory issue, but don't fret! This situation actually works in your favor because your house has a higher chance of standing out amongst the limited options. To make the most of this opportunity, it's wise to team up with a real estate agent who can guide you through the process. They can explain why it's particularly beneficial to sell under these conditions. Plus, since many sellers are also in the market to buy a new home, that agent will be an invaluable resource. They can help you stay informed about the latest homes available for sale in your area, ensuring you don't miss out on finding your next dream home.

Bottom Line

You may have noticed that there aren't a whole lot of homes for sale right now. It's not a new thing though - we've been dealing with this for a while. There are plenty of factors, both long-term and short-term, that have led to this shortage. But don't worry, if you're thinking about making a move, I've got your back. Let's chat and I'll break down how this shortage might affect you, as well as what's going on with the housing inventory in our area. Sound good? Let's connect!