SK, I think the low inventory is being caused due to banks holding on to their stock of foreclosed homes. I know many people who are saying that houses around them are vacant and sitting idle and not for sale…bank owned.
My personal belief is this:
Banks have a HUGE number of assets on their balance sheet at very inflated valuations, they cannot sell these houses bulk because if they did there would be Armageddon….literally! Perhaps the entire banking sector itself would collapse. Washington knows this as well hence QE infinity etc.
For this reason inventory is being released at a snails pace, WHILE, there are secret efforts (banking+political) to re-start easy money policies – FHA/government backed programs – to further bid up prices. The inventory will then change hands to these poor suckers who buy the houses and then subsequently foreclose when they cannot make payments – the tab will go to the taxpayer.
It will all be labeled in 2017 as a tragic affair and how everyone should pull together and pitch in to save the economy by paying a special tax – ala Greece.
The banking cartels meanwhile will be laughing all the way to the “bank”…LOL!
