An unexpected increase in US home resales helped ignite the stock market yesterday. Will this mark the definitive start of a recovery in the US housing market? Don’t bet the farm on it.

Sales of existing homes grew to an annualised rate of 5.03m units in February, instead of sliding as economists had expected. But with nearly 4m units still available, the market’s inventory overhang sits at a grossly inflated 9.6 months. Supply in the heavily overbuilt condominium market may be spiralling out of control.