aside from total sales, two other indicators are worth watching in this report -- the inventory of homes for sale and the median price. the inventory of homes for sale at the current sales pace is the inventory/sales ratio of the housing sector. for example, a 5.0 figure for inventory/sales indicates that the supply of homes for sale would be depleted within five months at the current sales pace. the lower this figure goes, the greater the need for new housing starts. the year/year change in the median price provides a good indication of inflation in home prices.
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