Digging out of a hole is a long process isn't it? June was the 9th month in a row that showed improving numbers for overall inventory and we're not out of the woods yet. We are making steady progress though. It's like dieting - a little at a time, inching towards a slimmer, trimmer, marketplace. Prices will continue to be vulnerable for some months to come since there's still waaay too many houses for sale. However, sales volume is inching upward every month. If that continues, we should be at a blanced market sometime in the Spring.
Again, "months of inventory" is just a measure of how many months it would take to tell every home for sale, given the current pace of sales, and assuming nobody else listed for sale. It's an artificial number in some sense, because how often does time stand still? But it's the number we all use because it works, somehow. When you get to about 6 months of inventory on the market, you're about balanced. See more on the absorption rate here.