Housing Markets: Inventories

Busy day, so I'll punt to the Calculated Risk blog. Here is a nice graph of changes in home inventory levels. Now, of course, there are homeowners waiting on the sidelines and new foreclosures driven by unemployment to come, but it good to see movement in the right direction:



This is also why new housing permits/starts are a good sign of economic activity but this activity doesn't really help market for residential housing.