A small bit of encouraging news for the housing market: According to the latest NAR existing home sales report, inventory was lower in August compared to August of 2007. Here's how the numbers stack up.
Picture #1: Year-over-year inventory decreased in August for the first time since March of 2005.
Picture #2: The inventory decrease in August was a modest 2.9%.
Picture #3: August inventory was still very high compared to the August inventory levels registered during the first half of the decade.
Adding it all up: The gap between inventory and sales remains very large. Although inventory decreased by 2.9% in the month of August, sales decreased by 15%.
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