And the answer is an emphatic YES. Inventory of existing homes is lower than it has been since 2005, when the market was on fire. Home buyers are finding it difficult to find the home to meet their needs, and are electing to build. Sales of vacant residential lots were up 30% in 2012 over 2011, and that trend is accelerating. While prices show signs of starting to rebound, they are still less than half of what they were at their peak in 2006 - 2007. Real bargains are going to become more difficult to find.