Housing market: Buyers frustrated over shortage of inventory - South Florida Sun-Sentinel.com:
"A few factors have contributed to the low inventory. New construction fell sharply during the housing bust, limiting the opportunities for resales now, said Walter Molony, a spokesman for the national Realtor group. When prices plunged, millions of homeowners lost equity, putting them "underwater" on their mortgages. Even though values are rebounding, many homeowners still can't sell without bringing thousands of dollars to the closing table. Meanwhile, a large contingent of homeowners who have equity are keeping their properties off the market, figuring they have weathered the downturn and now want to see prices keep rising before they consider selling."
This has been going on for so long that it feels like the new normal. Thanks to Fred Pilot for the link.