In my market, other than high end homes, inventory remains tight with many homes continuing to sell in multiple offer situations and sometimes for over asking price.  It can be very frustrating for home buyers. 

Of course inventory is tight; some statistics reflect that one in four homeowners owe more than their home is worth.  25% of home owners can’t sell unless their bank agrees to a short sale, but even so, they have little incentive to sell, they aren’t “moving up”. 

There are indications that the number of foreclosures coming to market will increase, increasing the number of homes available for buyers to purchase.

* Mortgage Delinquencies rise for 12th straight quarter

*More waves of foreclosures will keep downward pressure on home prices in parts of the U.S. over the next several years, two new studies project…….This "shadow inventory" of homes expected to hit the market is enough to last about 10 months, based on the average sales rate over the past decade, the Irvine, Calif., firm says.

*Last week offered some sobering news on the housing market: Even with broad government support for housing, data from the National Association of Realtors showed that the median price of single-family homes continued to decline in 2009. RealtyTrac, an online marketer of foreclosed properties, said foreclosure filings rose by 15 percent in January compared with a year ago.