If last year is any indication, get ready to see inventory levels falling over the next few months almost as fast as the leaves are falling off the trees.

In all seriousness, though, many buyers these days are having a difficult time finding a home they are excited to purchase -- which is not surprising, as inventory levels have declined 27% over the past year.

But it is likely to get (temporarily) worse for buyers.  As shown above, inventory levels fell 34% last year between the end of August and the end of January.  As such -- look at the meager supply of homes currently on the market -- and then eliminate 1 out of every 3 of those homes.  That's likely where we're headed over the next few months.

But here's the good news (sorta, kinda, with limitations) -- if you are thinking of selling your home in the next few months, you may have quite a few buyers angling to purchase it if it aligns well with what they are looking for in a home.  The sorta/kinda part is that you'll only be good shape if you don't have to buy as well.  After all, if we quickly sell your home (because of low inventory levels), but can't find something for you to buy (because of low inventory levels), then we still have problems.

Who is the indisputable winner in today's local housing market? 

The home seller who does not have to buy a home as well.  :-)