I don’t want to make too much of one month — especially when that month is February (short and in the seasonal dead zone). But with that said, February’s move in of months of inventory looks a bit ominous:
Months of inventory has tended to drop in February, both in the past 2 years and on average in the 5 years leading up to the pandemic nuttiness. Last month it actually rose to a level well above the pre-pandemic average for Feburary.
On the other hand, closed prices were up ~3% in February:
I’m looking forward to the March data to help us make heads or tails of this. For now, more graphs below.
