The jump in inventory may be reflecting some of the foreclosures hitting the market?

Here in Mystic, we've got a 10.2 month supply as of July. I'm watching a foreclosure where the auction was done on June 4 & the property still hasn't been listed so it's not reflected in the numbers. DH & I both feel there are thousands like it scattered across the country. Eventually, they'll hit the numbers. Also, foreclosures are still climbing & will well into 2008.

I don't see inventory dropping any time soon.

/t

I have this theory that New home builders will lead the way during this ride down..they will either slash the prices up front or throw in huge upgrades or combination of both which will have direct hit on the resale market numbers. July data seem to suggest the same..as resale market inventory is skyrocketing and New Homes sales are managing to stay afloat thanks to various discounts and upgrade promotions

I will be more interested in August-September-october numbers and am fairly confident that both new and resale markets will post a spike in investory due to mortgage standard tightening.

The new home builders are definitely making concessions. My mom is considering building a new garden home (150-180K) and one of the builders is offering $4,500 toward closing costs (with preferred lender). I'm sure a lot of tha is eaten by transactional fees, but it sure is a nice little chunk. Another builder if somilar homes is closing out his last ten homes in a development. Anyone who buys one of those ten homes gets to enter into a drawing for the 11th home -- a free house! Now, I don't know about you, but my desire for a frew house wanes when I have just purchased a home. But a nice gimmich nonetheless. A 1-in-10 chance of winning a 160K house. Not too shabby!