Aren’t you aware of all the pent up demand from “sellers” who are just waiting to get even ???
What’s the sense of listing today when over 90% of what is listed isn’t selling, and many people think that their neighbor’s house that remains unsold is too cheap anyway, theirs “must be” worth more.
MLS listings don’t tell the whole story in a declining market.
It’s a pain to list a house for sale. It’s easier to stay for free and get foreclosed on someday. Why bother trying to sell when you owe $200K more than it’s worth, unless you have to.
In many areas, every single home bought in 2004,2005,2006 and 2007 the “owner” has paid more than the house is worth today.
I wouldn’t pay much attention to falling inventory numbers.
It may turn out to be a foolish indicator.
The available pool of buyers has probably dropped over 50%,
who cares that MLS inventory has dropped 4% or 8%.
There is still plenty to choose from, unless you only want a certain color house on a certain street.
As far as shelter, there is no shortage of houses.
The comparison of inventory #’s is COMPLETELY different when everybody HAS equity and is holding off selling because they want more. Contraction of inventory in an up market is much different.
Just like there is no shortage of cars that provide transportation either, but if you only want a 1965 pink Cadillac, you may have a tough time finding exactly that, although there are thousands of other choices that provide the same result.
The simple need of shelter or transportation is very easy to meet. It’s only the location of the shelter that creates different issues (or the look of the vehicle)
