One of the most conveniently ignored data points from today's NAR report, is that the inventory of existing homes available for sale rose to 3.99 million, representing an 8.9 month supply at the current sales pace. This is up from 8.3 months in May, and is the worst number since August 2009, when it was at 9.2 months. Of course, if one adds the shadow housing inventory estimated by Morgan Stanely at around 5 million, and we get shadow inventory of just under two years. Obviously this is deflationary as it kills the pricing power of any household trying to sell their home. And in other news, the market now spikes on deflation concerns.