U.S. housing inventory is approaching levels not seen since the financial crisis, a further sign of ongoing difficulties for the sector and the economy as a whole.

According to recent data from the U.S. Census Bureau and the Department of Housing and Urban Development, the number of unsold, constructed homes reached 121,000 in July, the highest level since 126,000 in July 2009.

Why It Matters

The surging number of unsold homes has been interpreted as an indication of persistent weak demand, a trend also reflected in plateauing home prices and the dwindling number of "sellers' markets ."

Economists and experts have warned that muted demand and overall weakness in the housing market could prove a further headwind for the U.S. economy , already burdened by low consumer confidence an

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