The U.S. housing market is not yet what market experts call an efficient market. In an efficient market, when there is a seller, almost immediately there is a buyer. If there are enough buyers and sellers transacting, that market is efficient.

What has happened over these past few months is the exact opposite. While the housing market is not frozen, it is slow, for several reasons.

One is that even before the pandemic, there was a housing shortage in many areas. Real estate takes a long time to plan, to get money for development and then to actually build. In many cases, migration patterns suddenly create a mass of new people who will need housing, but the area lacks enough housing units.

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When the pandemic came, the shortage became exacerbated. Construction actually ground to a halt at one point in many areas. Right now that shortage nationwide varies, according to an October 2024

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