The housing supply is at the lowest level since December of '99 and existing home sales are up 9% from one year ago.

At the current pace of home sales the entire inventory of U.S. homes would sell in just over four months. This number makes for a sellers' market according to analysts because more buyers are competing for the few homes available.

As a result homes are selling quickly (28% faster than one year ago) and there are often multiple offers. Nationally, the average home price is up 8% from one year ago. The low mortgage rates have been helping buyers keep their purchasing power even as home prices rise. With fewer homes available for purchase many people are choosing to build. Sales of newly built homes rose 16% last month.

If you are interested in entering the new construction market or are looking at existing homes, it's more important than ever to get pre-qualified. Getting pre-qualified for a mortgage loan will help give you an edge in multiple offer situations.