Housing inventory drops in October

The number of homes listed for sale declined in October, the first time that has happened in nine months, The Wall Street Journal reported. In 26 major U.S. markets, the housing supply fell by an average of 3.3 percent.

Inventories usually increase in October as sellers try to make one final push before the winter downturn.

The decline could be due in part to the fact that some banks have stopped selling foreclosed properties in some states as they try to correct any document-handling errors. Additionally, some sellers could simply be waiting until next year in an attempt to ride out the downturn.