Does Supply & Demand Rule Everything? If So, Which Way is the Market Heading?

I’m having more fun with math than any man should be allowed this morning.

Here is a quick snapshot in chart form of what the Pikes Peak MLS Market looks like in Single-Family Sales terms at Mid-Year.

Pikes Peak MLS Mid-Year Snapshot

Now, this is a graph of what the relationship between Supply and Demand looks like at Mid-Year, expressed as Months of Inventory (Total Active Listings Divided by Unit Sales per Previous Month).

2010 Tax Credit Expired on June 30, 2010.