March Home sales dropped despite a surge in supply

 CNBC Report this week. 

Key Facts: 

Home says fell 4.3% in March

Mortgage rates rose to 7.5%

Inventory "improved slightly" up 4.7% month to month (3.2 month supply)

Prices were up 4.8% YOY

Weitz takeaway:

If you have read this blog, you know that my number indicator on the future of home pricing was inventory. To see rates over 7.5% and with "improve" (increased) inventory, it will be interesting to see what the next 3-6 months hold. If inventory continues to increase, I predict we will start to see modest to significant price reductions. If I had to make a prediction, I believe we will look back on this as the official start of the residential downturn.