Most housing is purchased with other peoples’ money. In this respect, it is a bit different than normal supply and demand, since there are three “people in the equation” (buyer, seller, lender). Inventories must go down, but lending must also return to “normal” for sales to pick up.
One thing I have been looking for is a good indicator of how willing lenders are to lend. I think the best indicator is the spread between what the FED charges for lending and what banks charge borrowers (this is increasing). Mortgage apps only show how much buyers WANT to buy.
