While New Listings are at about the same levels as last year, Pending sales (homes that have an accepted offer but have not yet closed) are still trailing last year by about 15%.

In the last six months we’ve seen seller activity (new listings) find an equilibrium but buyer activity (pending sales) has been trailing during that time as well.  March 2007 housing supply sits at 7 months, up 56% from March 2006′s 4.4 months.  A 7 month housing supply means that it would take 7 months of no new inventory to sell the current inventory we have for sale.

As I said last week on WCCO 830 AM, the “tone” of the market has improved dramatically over the last 3-4 months but the market activity is still lagging, which means that we’re looking at another year or more before we see a dramatic improvement in the market.