August resale inventory was actually down almost 4 percent from a year prior as some potential homesellers apparently gave up on the prospect of finding a buyer. The decline in inventory certainly wasn’t a result of more homes being purchased — sales volume was down 20 percent from August 2006.

Month of inventory, an indicator which is pictured in the accompanying graph and measures the amount of time it would take to buy up all of a given month’s inventory at that month’s pace of sales, rose to 8.4 months. This represents a 20 percent increase over last August’s 7.0 months of inventory.

— RICH TOSCANO

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