The inventory of homes available for sale jumped 2.6%
to 2.751 million existing homes — the highest level since May 1988 when they
totaled 2.85 million. July’s level equates to 4.6 months’ supply at the current
sales pace, which is the highest supply since November 2003..
"We are starting to see more houses coming into the
market," Harris told Bloomberg. "First you see inventories rising, then you
see a flattening of prices and then you start to see people have difficulty
selling houses because buyers have more options and they get more demanding."