Existing home sale volume declined again last month, having done so in pretty much a straight line since the stimulus-laden days of early 2010:
The number of pending sales, having blipped up in August, once again declined to fall roughly back in line with its post-May trend:
Meanwhile, inventory for sale continued its unbroken (in 2010) upward streak, although the rate of inventory growth has slowed lately:
The drop in pending sales along with the increase in inventory pushed the months-of-inventory figure up above the six-months line for the first time since late 2008:
Six months of inventory, readers may recall, represents a level of supply that has historically tended to mark the line between upward and downward pressure on home prices. If the number of months of inventory remains at or above current levels, history suggests that we will see price stagnation or even declines in the near future.
Please contact Rich Toscano at rtoscano@pcasd.com and follow him on Twitter at http://twitter.com/richtoscano.