``We've been told by the National Association of Realtors for at least the last six months that low inventories have been the source of the disappointing home sales. As I have argued in several past articles, however, the deteriorating financial condition of the average household is the real reason for the declining trend in home sales. Moreover, the inventory of both new and existing homes has been rising since the beginning of the year but higher inventories are not stimulating sales. Rising inventories and declining demand will inevitably force prices lower over the course of the summer.''

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