Not enough homes for sale
As would-be homebuyers in a lot of markets know, there aren't enough houses for sale, and we need more new ones.
Supply isn't going to catch up with demand this fall: We're heading into the months when fewer people put their homes up for sale than they do in the spring and summer.
Housing economists say builders need to construct more houses, but that's a long-term solution because construction takes time.
Meanwhile, the lingering effects of the housing crash continue to prevent owners from putting their homes up for sale. According to CoreLogic, 7.1% of homes with mortgages had negative equity earlier this year, meaning that their homes were worth less than the amount owed on the loans. These negative-equity homes tend to stay off the market because the owners can't afford to sell.
"New construction is failing to keep up with household formation, meaning that the low vacancies in rentals and the tight supply of homes for sale will continue to be a key theme for housing in the months ahead," says Jonathan Smoke, chief economist for Realtor.com.