Calculated Risk has a nice summary of current housing supply and what all the numbers mean.
"The key numbers to follow for the housing market are 1) existing home inventory, 2) number of delinquent loans, and 3) the excess vacant inventory."
"...For October, the NAR reported 4.43 million sales (SAAR), and 3.86 million units of inventory, so that equals 10.5 months of supply."Total Northern Virginia inventory stands at about 7,989 available listings -- last year, the total available listings numbered 6,242. We've finally seen a typical seasonal decrease in inventory, although listings were somewhat elevated YOY this summer after the tax credit buying wore off. Data provided by MRIS shows that Northern Virginia's months of inventory peaked in April 2008 at about 10 months, and currently stands at about 5 months or less.