Right now it does not mean anything to me. As I have posted before I think you need to see yoy sales flatten out for several months in a row. We have not come close to that yet as sales volumes are still down each month when compared yoy. After that point is reached then I would start to look for inventory to flatten out. Once yoy sales are stable and not declining AND inventory is flat and not rising AND there is not a strong number of distress in the queue then you can start thinking a bottom is at hand.
Also I have strong evidence of phantom inventory. Right now I am doing work for a group up in the bay area. They have sent me several homes here in SD to price out and advise them on regarding possible purchases. This group is considering buying in bulk directly from lenders to then resell. Most all of the homes sent to me are not on the MLS at present. They HAVE BEEN on the MLS but they are now cancelled or expired. Not alot of these homes are in our favorite neighborhoods but there is indeed phantom inventory out there.
