From the Wall Street Journal:

Home resales surged 10.1% in October – hitting the highest pace since February of 2007 — fueled by buyers rushing to tap the federal tax credit. It helped that home prices and mortgage rates remain low, possibly making the monthly mortgage payment more affordable than renting in some areas.

That has eaten into the number of homes available for sale. At the end of October, total inventory fell 3.7% to 3.57 million existing homes available for sale, a 7-month supply for the first time since February 2007, the National Association of Realtors reports today. That makes unsold inventory–nearly 15% below a year ago–just a tick above the six-month mark that typically represents a healthy market.

“The supply of homes on the market is now at the lowest level in over two-and-a half years — we’re getting closer to a general balance between buyers and sellers,” says Lawrence Yun, the trade group’s chief economist.

But don’t break out the bubbly just yet:
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