I've gone seventy-nine hours without sleep, creating. When that flow is going, it's almost like a high. You don't want it to stop. You don't want to go to sleep for fear of missing something.” - Dr. Dre
FOMO (the Fear Of Missing Out) dominated the housing market leading up to the 2006 housing bubble and subsequent crash. At that time, the housing supply more than kept up with demand as many homeowners put their homes on the market, new home builders were building products at an epic pace, and inventory was plentiful as evidenced by the seven months plus supply of existing housing inventory that was available for sale in 2006. Today, the existing housing inventory number barely covers two months of supply. While builders overbuilt during the 2006 bubble, they substantially pulled back over the next decade leaving us with an incredible shortage in housing. Sam Khater, VP and Chief Economist, Economic & Housing Research at Freddie Mac, explains that building pullback over this last decade is the major factor in the lack of available inventory today.