Housing inventory continues to drop

The recent uptick in foreclosures is not yet translating to more houses on the market. The total number of homes for sale is down 21% in October, year-on-year, according to the latest RE/MAX national housing report. The number dropped for 16 straight months. The real estate agent franchise added that the month supply of properties is slightly down, to an average of 7.7 months to clear market inventory. Six months on market denotes more balance between supply and demand. The months supply peaked a nearly 11 months in December 2010, by way of comparison. On an annual basis, national sales prices are down 5.4%, but transactions are up 9%. As the market moves deeper into Winter, RE/MAX expects a monthly decline in home sales. Write to Jacob Gaffney. Follow him on Twitter @jacobgaffney.