Inventory isn't shrinking to a scarcity. However, it is much smaller this winter than it traditionally should be. In fact, in Portland, it is smaller than it was in the peak of summer. Typically, a summer inventory is small, and a winter is larger, because there are more buyers in the summer.
So, what is up with this winter? Well, the winter is usually plagued with homes that haven't sold. But this year, the sellers have reduced their numbers, and the interest rates have kept a sustainable number of buyers.
Thus making a lower supply and demand for inventory. Is it a great time to sell? or is it a great time to buy? The answer depends. If you want to sell and have less competition... Yes. If you want to buy and take advantage of a lower payment with an under 5% interest rate... Yes.
Will it be better in the spring or summer of 2011? No one knows. All we know is what we have right now. More buyer than normal, and less sellers than typical. Take your destiny.
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