Barry Miller (whose answer follows mine) gives you good data, and a sense of how the market is going.
You can see from the data that the (velocity of sales) i.e. the total number of homes sold per year has shrunk, and while the dollars per square foot seem to have gone up, really the data shows that the less expensive homes are not selling at all, and that the finer quality homes are selling but for less money than we've seen in the recent past.
The attitude of the sellers today is such that sellers don't believe they will get an offer at this time of year, so many have decided to pull their homes from the MLS inventory. You will see a glut of homes on the market in late February or early March--depending on the amount of snow on the ground. A good thaw will do wonders for the inventory--at issue is, will there be buyers in place at that time? If there are buyers taking advantage of their tax refunds and any tax credit (from the Administration) and a new lower mortgage rate from the Fed, then maybe we Realtors will be busy.