First, let’s consider the following graph of active listings vs. sold listings for the last 5 years.
The monthly inventory of available homes (active listings) has been declining rather sharply over the last five years (from 3,161 in January 2009 to 1,060 in December 2013), while monthly sales have risen steadily over the same time period (from 273 to 675). Percentagewise, that’s about a 66 percent decline in active listings vs. almost a 250 percent increase in sales.
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