In 2005 inventory peaked in October, in 2006 in July. Will 2007 be like 2006 or like 2005? Why the difference? My feeling is that 2007 will be more like 2005 but it is just a guess. A lot of people gave up selling in late 2006 to wait out the rebound. This didn’t happen. Now these same people have to compete with foreclosure and “need to sell” inventory from the ARMs resets. Big price drops could be around the corner but don’t count on it. The housing market has proven to be very resilient and an imminent crash has been called since 2004.
