In a strange twist, the number of homes listed for sale actually fell in January, according to The Wall Street Journal.
Typically, the number of homes on the market jumps up following the holiday season. Additionally, analysts had been expecting an increase as banks process the backlog of foreclosures. However, the inventory actually fell 2.1% in 26 metro areas.
Part of the reason may be that winter storms caused many homeowners to hold off on sales. Nonetheless, compared to January 2010, the overall supply was up by 5.8%, meaning many markets are still overloaded.