Rich, point taken on asking vis selling per the chart. However, asking is a leading indicater albeit a somewhat indefinite one. However that is the nature of a leading indicator versus a lagging indicator which is exact. Interpreting a leading indicator is always akin to a form of “tea leaf reading.” But it behooves an investor to look forward not dwell on the past.

The sold data in the overlaid chart you posted is dated information. The arms length decision beween a willing buyer and willing seller to buy/sell reflected by the sales figures depicted in the chart occurred weeks or even months ago. The asking information reflects the mentality of sellers today. That combined with a plummeting inventory says much.

Its undeniable that inventories are at levels not seen for years, a bullish inidcator for housing.

Inventory
May 2009 11,941
May 2008 18,557
May 2007 18,505
May 2006 18,060