Housing inventory back to boomtime lows

29 Jan 2013 by Jim Fickett.

Today S&P released the Case-Shiller house price indices through November.

Inventory is low, even by the standards of the boom 10 years ago, and prices have been in a rising trend for 10 months now:

My hearty congratulations to Bernanke. Nevertheless, (1) the low inventory is partly seasonal, (2) there remains a huge inventory of distressed properties, (3) the current recovery is strongly reliant on professional investors buying up large numbers of properties for cash, in a new and untested model for the rental market, and (4) it is also strongly reliant, on the individual buyer level, on low interest rates, which could change in an unpredictable way.

So the increases may well continue, but I would not invest on that basis.

See Robert Shiller's misgivings at A New Housing Boom? Don’t Count on It.