In one word it is “TIGHT”. The inventory of homes for sale has been and will keep shrinking. The demand for homes is high. Builders are struggling to put up more homes, but the number is just not enough to keep up with the demand. Home builders will do what they can to satisfy the demand, but they are limited by tight credit, lack of workers and lack of buildable lots. New homes might be shrinking in size to keep them more available for first time home buyers. Starter homes are appreciating very fast because of the demand from first time home buyers and the scarcity of homes at the low end of the market.

Raising interest rates also causing a slow in refinancing activity and putting a dent in the overall number of loan originations. More loans will be going to home buyers now.