The inventory liquidation continues. New home inventories have been halved during 2009. Difficulty in financing standing inventory is going to continue to pressure inventory levels. Getting down to 200,000 would be supportive to pricing.
Even with the a halving of inventory levels, months supply is still too high for the current environment. Months supply needs to backoff to 5 before pricing can firm up. August thru mid-October sales will tell the tale. 
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