I dunno. I think he is kind of making an interesting point, alluded to by others’ comments: If buyers are not buying houses, sellers do not bother putting them on the market.
But the point people are exploring when they look at inventory is not demand behavior, but supply behavior: Must-sell inventory shifts the supply curve forcibly to the right. If there were significant must-sell inventory, you might expect to see substantial increases in inventory.
Perhaps this increase is partly negated by the decrease in other inventory from the demand shift; this is the sellers’ “battening down the hatches to ride out the storm”, as we have anecdotally seen in the coastal areas.
