A healthy market actually has about a 5 month supply of inventory. Right now we have about a 9 months supply, and yes the banks are going to dump double that onto our markets over the next few years. Prices can only go down, it's not pessimism nor is it rocket science, its just economics and reality, adjust accordingly.
'Shadow inventory' of homes total nine-month supply - San Jose Mercury News
Mark Hughes, Luxury Real Estate Auctions
