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IPFS News Link • Housing

3 Reasons Why There Really Is No Housing Shortage

• by Lance Roberts

A Quick Story

In 2007, as the housing market was going crazy, I lived in a quiet, gated community. I had no intention of selling my house. However, one day, a knock came at my door from a realtor who had a client willing to pay me much more than I ever imagined for the house.

I sold the next day.

Then, In October of 2008, I bought a house from a distressed seller relocated back to England. It was the "perfect" house, next to a prime school my kids could walk to, and extremely convenient to everything. It was my "forever" house.

In 2015, I received a knock at my door from a realtor representing a client moving from Montana to work for an oil and gas company. I guess he was "The Godfather" because he "made me an offer I could not refuse."

I sold the next day.

The moral of the story is that "supply" is only a function of "price." My homes were never "part" of the calculated inventory because they were never listed. However, they did become part of the "supply" when the "demand" fostered the right price.