Housing Inventories Fall

In a week where little or no economic news of any note is released, one piece of news that will be bringing a smile to many American homeowners is that the inventory of new houses fell to 6.3 months in November, which compares with new-home inventory of 6.7 months in October.  In short, the new-home inventory tells us how long builders can expect to wait to sell a new home on the market and a decline in the new-home inventory rate tells us, rather obviously, that (a) more Americans are purchasing homes, and (b) builders are building less homes.  Either way, it signifies that movement is happening in the American housing market and that the lull many are talking about may not be as dramatic as we think it is.  This is indeed good news for existing homeowners.

We wish all of our reader a Happy New Year and prosperous 2007.