We have established that there aren't many homes for sale right now, but the under $200K market has seen some of the largest changes in inventory levels.

As shown above, the 194 homes for sale under $200K right now marks a 38% decline over the 314 homes that were sale at this same time one year ago.

I think we need to see some further new construction under $200K (and in some other price ranges) to help with these low inventory levels.  Re-sale homes alone are not going to cure declining inventory levels.