Here are four reasons why inventory continues to be so low.

Right now it seems like everyone wants to know why inventory is so low. So today I'll share the four main reasons 

1. New construction has lagged for several years. Since the crash in 2008, builders underbuilt homes for 13 years out of caution. The graph at 0:24 in the video above shows just how few new homes were built during that time. Now, they’re trying to play catch up but are having issues because of supply chain problems. 

2. The pandemic changed the meaning of what a home is. As people spent more time in their houses, their living spaces became much more important to them. At the same time, work-from-home policies gave people the freedom to move wherever they wanted. We’ve felt this in the Lowcountry a lot. If someone is working in New York in the winter, why wouldn’t they move to our sunny area if they got the chance? 

“Homeowners continue to build equity in our hot market.”

3. Rates are historically low. At their lowest, we saw interest rates well below 3%. This means houses are more affordable than ever, and buyers have flooded the market in response.

4. Homeowners have increased equity. People can sell their homes, cash out, and move to their dream area. Real estate continues to appreciate, so this will likely be a factor for years to come. 

If you are looking to make a move or if you have any other real estate-related questions, please call or email me. I’d love to help!