Shrinking Supply

Market Tightens While No One's Looking

Quick quiz:

When was the last time that Twin Cities housing inventory was as low as it is now?

A. June, 2008
B. January, 2003
C. August, 2001
D. March, 2006

Correct answer: D.

What's so significant about that?

Tight supply -- along with easy money -- was the kindling that lit a fire under home prices . . . right around early 2006 (at least, that the was last, big upward move).

Hat tip to City Lakes' Budd Batterson for that statistic.