NAR reported 2nd quarter sales for the nation last week. Median prices increased 5.3% over the last 12 months to $269k. But, the number of home sales dropped by 1.7% from the first quarter and were down 2.4% from the second quarter of last year. Across the nation we had 1.95 million homes for sale, which gives us 4.1 months of inventory.

Here is why this data is important—even with 4 months of inventory home prices are still rising a sold 5% a year.