In our area, the Las Vegas Valley, the listing shortage is artificially caused by the banks. 1.) There are more properties in escrow than are available. This is because short sales take so long to close, and are "on the books" as Contingent or Pending for months and months and months. 2.) There are thousands of homes that have been repossessed by the banks, or are in the final stages. However, due to the robo-signing scandal, the banks are afraid to proceed to the next steps in the process. We even had a property now listed as a short sale which was foreclosed upon and then a recession of the foreclosure transferring the property back to the owner, we can only guess from a bank mistake. Until this mess is straightened out by agreement between our state Attorney General and the banks we can't hope to see our inventory increase. We don't see many properties, except specialty properties, that are not selling due to refusals to lower their prices. What we do see is appraisers cutting the offers we do get, forcing further reductions in our sales, and lower sale price stats. Our foreclosure/deficiency stats are right up there at the top of the charts, so we're not sure this would be true for other markets.