One of the most striking changes in inventory levels has been the "under $200K' market, where we have seen a 58% decline in the number of homes for sale.

A small part of this is the slow and steady increase in the median sales price -- causing some homes to no longer fall within this price bracket. 

Another significant reason for this decline is a slow and steady increase in the number of people trying to purchase homes in this price range.

The final component is the lack of new construction in this price range.  Increasing demand and decreasing supply is usually addressed via builders jumping in and starting to build new homes (or perhaps townhomes, in this case) to help bridge this gap between low supply and high demand.

If we continue to see increasing demand, decreasing supply, and no new construction, we may start to see faster than normal increases in the sales prices of these properties as buyers compete for a slim number of listings.
 
Read more about our local housing market via my most recent monthly market report....