Housing Inventory Declining

At least it is in Northwest Arkansas. Prices are falling as well:

Northwest Arkansas also saw a sharper decline in sale prices, dropping 10.4 percent in Benton County and 6.3 percent in Washington County from the year-ago period.

However, Northwest Arkansas remains one of the strongest markets in the country, as does Little Rock.

Nationally, though, the news keeps getting uglier:

The [absolute level] of inventory continues to fall, down 29.9% y/y, but because sales are falling even faster the months supply is still rising, up to 13.3 in Jan from 12.2 in Dec. This will keep [prices] falling for the rest of this year at least.

and uglier:

“If Americans are worried they won’t have a job next month, next quarter, or next year, you’ve got a real problem,” Larson said. “It doesn’t matter if mortgage rates are 3% or 8%. People just aren’t going to buy many houses.”