Where are all the properties?

Where are all the sellers?  The last couple of years there have not been many houses on the market but I don't think I have ever seen it like this.  And just from my sense of the market, I don't have the feeling that there are many listings coming any time soon.  This could be a tough year for buyers trying to find a home. 

I am not sure why there isn't more inventory.  Prices have been rising so there should be more sellers willing and able to sell their homes than anytime in the past 10 years.  A big part of the problem I think is that a seller can sell but they aren't able to find a suitable house to buy.  This is a conundrum that makes the problem worse.  Sellers cant buy so they don't sell, which means less to buy, which means less to sell.... you get the point.   If you look at the current inventory levels in the graph below, the inventory levels for previously owned homes (not new) the level is 1.8 months of inventory.  That's incredibly low.  A balanced market is 4-6 months of inventory, so we are not even close.  Sure, a little bit is seasonal dependent but this is a key fundamental to watch throughout the spring.  If our months supply of inventory level stays around 2 months, it will be a tough year for buyers, probably a good one for sellers, but maybe not the best for a balanced housing market.