Our housing supply continues to shrink according Lawrence Yun, the Cheif Economist for the National Association of Realtors. What that means is the "unsold inventory" of homes is trending downwards. We are seeing that too in Douglas County and Parker CO, Castle Rock CO etc. as well. There just aren't that many homes on the market as there used to be, and that is a good thing. It will be even worse in December, when sellers tend to take a break for the holidays. The other reason for the low inventory is sellers that couldn't sell their homes in 2011 aren't just relisting them. They are giving up and waiting it out and trying it again next year.
Don't think for a second that lower inventory will mean higher prices though. In theory that would apply, but not in this economy. And I bet its short lived. I predict a flood of homes coming back on the market in the Spring! Buyers will be in heaven with low low rates and lots os supply again. I think 2012 is going to rock personally!