According to the WSJ;
"The number of homes listed for sale, which stood at an 11-year low at the end of last year, fell even further in January, according to a report released Thursday.
There were just 1.48 million homes listed for sale at the end of January, down by 5.6% from December and by 16.5% from one year ago, according to data compiled by Realtor.com. That’s the lowest level since the firm began its count in 2007. The National Association of Realtors separately reported last month that inventory ended 2012 at an 11-year low.
It’s normal for inventories to decline in December and January, as home sellers wait for the start of the spring buying season to list their homes for sale. But the shortage of homes for sale in a growing number of U.S. markets is maddening for would-be buyers who frequently complain that there aren’t enough good choices. Bidding wars are becoming more common."
This IS an issue locally as well. Good for sellers! (p.s. with interest rates in the mid 3's, it's also great for buyers!) This is certainly one for the few times in history I can recall that it's a win-win for buyers and sellers!
The pendulum is usually swinging one way or the other...right now it has stopped and is in the middle! In my opinion, Historic.
With federal spending and debt at it's highest point ever, the fed can't afford to keep rates at this level for too long a period of time. They eventually need to start recouping their losses.