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Is The Housing Inventory Dam About To Burst? [Video]

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As you probably know, prices for wood, steel, copper and other building materials are soaring. On May 12, the annual rate of inflation jumped to from 0.8 percent in March to 4.2 percent in April. Couple these facts with the end of COVID-19 mortgage forbearance, the end of the eviction ban, plus the oldest baby boomers turning 75 this year, inventory increases may occur much sooner than anyone anticipates.

For years, existing-home sales have held steady at about 5 million to 5.5 million per year. In 2020, despite the pandemic, existing-home sales reached 6.76 million. As of March 2021, the National Association of Realtors (NAR) puts the current pace of existing-home sales at 6,010,000. Other experts project the rate may be as high as 7.1 million. 

The high demand is being driven by three primary forces: COVID-19-pandemic-motivated moves, millennials being at the prime age for buying their first home, plus the uptick in the number of investors …