James Hagerty at the WSJ writes about existing home inventory: Housing Momentum Builds but Perils Persist

Inventories of homes listed for sale are down sharply across the U.S. and have reached very low levels in some areas … The decrease in supplies has sparked a return of bidding wars on lower-end properties in some neighborhoods, but the national picture is mixed.

Here in Boston, we’ve been seeing bidding wars on low end properties since last spring – and that frenzy is driven by a combination of a high number of foreclosures at the low end pushing down prices (what housing economist Tom Lawler called “destickification”), and the first time home buyer tax credit.