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Decline In Inventory Isn't Necessarily A Good Thing

Last week the Pending Home Sales Index was released for housing contracts during January and the numbers showed many fewer houses were on the market than usual for this time of year. Many interpret that as a good thing because it means prices will start to rise (since demand exceeds supply, theoretically). But, in a market such as this one the normal rules don't always apply and real estate appraiser Jonathan Miller recently blogged about why in this case less inventory isn't something to get excited about. Click over for all his thoughts on the matter.

· The Decline In Inventory Right Now is NOT a Good Sign [Matrix]
· Housing Inventory Low, But Sales Are Good [CDC]