The National Association of Home Builders confidence index rose to 41, the highest level since June 2006 and the National Association of Realtors reports a further drop in houses, town-houses, condos and coops listed for sale, down 17.7% over the last year. Major cities in California were among those locations reporting the largest year over year declines in listings of homes for sale, well over a third in most cases. Of 146 cities in the Realtor’s report only Philadelphia PA and Shreveport LA reported increases in the number of homes list for sale. Declining inventories are seen as harbingers of higher prices ahead. These reports follow comments last weekend from both Bank of America and JPMorganChase that further gains are expected in housing.