Inventories of existing homes fell 16% over the last 12 months. This means that the number of sellers of homes competing with each other has fallen. This points to stabilization of prices.
Problem: this does not count “shadow inventory”: repossessed homes, abandoned homes, and other non-traditional sources of housing. But this does point to some temporary alleviation of the housing crisis.
A recession in 2012 (likely) will reverse this.
