Talking about the Psychology, the sellers and real estate agents play the dirty game. The report shows the inventory is down, but I feel there are more sale signs. I found that a lot of houses could not sell for a long time in MLS. They took off from the MLS and advertise in Yahoo or Zillow instead. So, everybody feel that there are lesser inventory.

Go the Yahoo Real Easte and click on the Real Easte Classifieds, you will find a lot of houses are not in MLS. But they were in MLS for long time but could not be sold.

If adding these to the MLS, it should be at least 10-20% more inventory.