In reviewing this article, it emphasizes what I think is the biggest reason for the tight housing inventory. I would coin it “interest rate freeze out.” If you put yourself in the shoes of a perspective move up buyer why would they take on a new home that has probably appreciated 30-50% over the past few years and further give up their interest rate that is probably sub 3% for a potentially overpriced home and a rate that is double what they are currently paying. With these move up buyers frozen in their home due to the previous factors they simply are not listing their home.
Article: 14 million mortgages were refinanced during ‘pandemic boom’. That makes life very difficult for home buyers.