Housing Supply Surplus

Some report came out today stating that the home builders were building more houses. How can the market cheer the builders to an over supplied market is beyond any logic to me? The chart below, straight from Freddie Mac, shows the inventory of unsold homes in the US. There is also the moratorium on foreclosures that is ending and add more to the supply.


As continuing un-employment claims continue to rise, more foreclosures will add to supply. Can anyone say it's time to start building houses after looking at this chart? Just because Lowe's beats earnings on selling more paint and gardening items, it's time to say the housing crisis is over?

Come on...this market is in fantasy land. Better go out and buy some caterpillar stock because bulldozers will be in high demand. not a recommendation