The chart below is current as of this month. What it is showing is the number of listing on the market (Green), the average price per sale(Yellow), the number of new listings add(Red) and last the number of listing sold (Blue) in the past two year on a monthly period. Two of those line paint a very scary picture of the future, can you guess which two?
The Green line is the inventory of homes in the MLS back in June 2006 we have a inventory of about 2000 home and were closing close to 500 deals a month according to the Blue line that means we would see the entire numbers of homes in the MLS inventory with in less then 6 month. Today the number are 6500 home in the MLS and the sales have dropped to less then 25 closed. At this rate we have a 10 years supply in the MLS. One last look at the chart the inventory is still rising and the sales are still dropping, the gap is still increasing.