Housing is Still Flat

Home sales rose over 7% from July's record lows....good news correct?
...NOT REALLY...August is still the second worse month for existing home sales on record.

Even though home sale prices are up...actual home sales are down and there is an 11.6 month supply of inventory.

The interesting question is how much shadow inventory is there on the market. You would assume that there are a bunch of people who have capitulated and are not even listing their house for what they owe on it because they know it won't sell. You would think as price do rise that loads of new inventory will be dumped on the market by people who want to leave the state, or move up in house thus increasing inventory and lowering prices.

We may have reached a bottom....but with all this inventory... we will be bumping along it for a long time.