An excerpt from a recent article from the June 10th LA Times. Though much of it focuses on the southern california market, it reflects the same supply and demand dynamic the Bay Area homes market is experiencing:
"The newest problem for the slowly improving housing market isn't a shortage of serious buyers, it's a shortage of good homes. Would-be buyers are packing open houses and scrambling to make offers on properties before they are even listed.
Bidding wars are erupting. And real estate agents are vying fiercely to represent the few sellers that do exist.
Housing inventory has sunk to levels not seen since the bubble years.
The number of American homes with a "for sale" sign hit 2.5 million in April, the lowest number for an April since 2006, according to the National Assn. of Realtors."