Existing Home Inventory declines 18% year-over-year in December

[mEDITate-OR:
love to think "wishfully"...
or not, as the case may be...
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What some are seeing is a huge drop in visible inventory.
But, this might be somewhat diss-cieving.
In Phoenix there has been a huge drop in both REO/foreclosure sales and listings.
There is also a huge supply of listed home that are for sale at twice the price per sq ft of the homes that are, in fact, selling.
The REAL question is whether or not there is currently a mismatch between willing buyers and willing sellers, such that we will see a large increase in sales prices.
THAT is not only not obvious, tis not guaranteed.
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"All cash investors" are still scooping up low priced foreclosures - "normal buyers" never see those listings - they are gone before they even look.
But, all cash investors are NOT buying up higher priced homes.
Similarly, home listed at very high prices, both per sq ft and in US$s, are not selling.
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So, the RE question becomes, will willing buyers wait for more lower priced homes, or will they now start to bid up prices?
That IS The Question..., what the answer is or will be..., is the 2nd question.
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Existing Home Inventory declines 18% year-over-year in December
http://www.calculatedriskblog.com/2011/12/existing-home-inventory-declines-18.html
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