However, flat is a lot better than up, and most of the flatness can be attributed to two factors, I believe:
1) Summer slows down buyers, while a lot of the pressures that create inventory, such as foreclosures, are not slowed by seasonal factors
2) Word is getting out that sales are picking up, and some of the sellers who had taken their units off the market are returning them. This is inevitable, and healthy.
As the graph above shows, we’ve come a long way since last September.