16 Year Low In Housing Inventory On Record 1,939,197 Foreclosures

CNBC eagerly quotes the Census bureau today in claiming that housing inventories have reached a 16 year low:

The seasonally adjusted estimate of new houses for sale at the end of July was 271,000. This represents a supply of 7.5months at the current sales rate.

That is certainly one way of looking at the data. Another way is to demonstrate that there is an absolute flood of record, excess inventory waiting to be unleashed on the market:

Maybe CNBC and the Census bureaus are trying just a little too hard to recreate the truth?

h/t fish gone bad