Inventory is down, which stabilizes prices.
Here in Greenwich, single family inventory as of June 30 is 609, compared to 587 in 2011, and 561 (2008), 510 (2007) 470 (2006) and 404 (2005). We have a ways to go before stabilization, at least so far as inventory controls.
High end ($5,000,000+) is also doing poorly: 151, (June 30, 2012),143 (June 30, 2011), 160 (2008), 124 (2006), 94 (2004)
For What It's Worth 
The situation in Greenwich is likely the result of an evil, widespread conspiracy of greedy buyers and their lackey agents to deprive sellers of the true and rightful value of their homes. Or possibly an unwillingness or inability by sellers to set market clearing prices.
Adam Smith had this all figured out in 1776.
How much of that inventory is “California dreaming?” One statistic that I have never seen in the national surveys is the inventory of “unsellable” houses. Those would be the gutted, detroyed, squatted in, and also inner-city abandoned homes. I’m simply curious- have you or any readers seen such a number? They never make it into the Wall Street reports.
Bidding wars in south florida as everything grinds to a halt.
23.8% of all mortgages in Broward county Florida are in default 90 days or more. However, the county with a population of 1.75 million only has about 5000 properties for sale total; less than half the inventory in 2011. Then there is the cases of more than 1000 or so properties the banks have forclosed on, yet refuse to sell or do any maitenance on. Just sitting there rotting away.
Gee, inventory is “down” but sales are awful. Something is very fishy with the numbers.
Sounds like shadow inventory is off the charts huge.