For any market to function freely, you need sellers and buyers that can willingly execute their part of the transaction. The fact that inventory is gone down so much indicates that there may be a real problem for people that want to sell, but may not be able to execute for a number of reasons.
It appears that having a system that has so much govt employment and govt intervention (Subsidizing) is skewing the markets’ reaction time. If govts have to start cutting back due to budget imbalances, this will have to effect the real estate market as well. The long bond rising will also cause problems. Both these issues seem to be evolving at this time.
