Looks like inventory on the low end is building again

I might be wrong but over the last 10 days I am starting to see a growing number of low end houses for sale. Which could mean the buyers have gone away for the winter OR the banks are finally releasing some inventory. Either way this will certainly have a negative impact on December sales.

My prediction is that December is reported as a negative month when all the metrics are released in January.

If this is true we just had what stock investors would call our "Dead Cat Bounce". As a pet lover this is a terrible term but in this case the real estate market just had a bounce and we may see a dive deeper with more foreclosures and short sales and lack of new buyers ...