Certainly the quadruple in inventory since early 2004 should be of some significance. Or how about more than a double since same time frame 2005? I don’t think the NUMBER of homes for sale is of so much significance, rather it is the arrival of something that wasn’t suppose to arrive….decreasing sales volume along with increasing prices (indicative of a market top) which leads to another downswing in sale prices. This will effectively kill all speculative demand and topple the first of MANY dominos yet to fall here. Bye bye RE sector/RE finance jobs (even if we just go flat) and bye bye “goldilocks” local economy, hello death spiral.
