Hopeful Glimmers in the Housing Slump

Hopeful Glimmers in the Housing Slump: "Time to punch that pulsing-red panic button? Not yet. Because several other pieces of news in the Realtors report were better than expected, indicating that the housing downturn may not be quite as bad as some fear. For example:

• The decline in the number of existing homes sold was less than economists expected. It fell 0.5% to 6.3 million. There was no change at all in the number of single-family homes sold in August. The decrease was entirely in the category of condominiums and cooperative apartments.

• The inventory of unsold homes, albeit the highest in terms of months' supply since April, 1993, increased from July to August by a modest 1.5%, the smallest amount so far in 2006. If inventories start to top out, it will be a good sign for housing.

• According to an analysis by JPMorgan Chase (JPM), the inflow of 'new offers'—that is, existing homes coming onto the market—held steady in August and was down 5% from a year earlier. (Those numbers are not seasonally adjusted.) This shows the market is adjusting to reality."