As absurd and far fetched as it may sound, at least one of the problems affecting the housing market is…a lack of homes for sale?  While Miami Beach homes may not be one of the specifically affected markets, a number of real estate agents are saying that there aren’t enough homes to go around that are for sale.  How can that be?

To look at the broader picture, there is currently an eight month backlog of homes up for sale on the market, which essentially means that selling off all of those homes would take that same amount of time.  March numbers show that existing home inventory has dropped by two percent from the same time last year.  As a result, bidding is becoming increasingly fierce and it’s getting tougher to find worthwhile bargains for mid-priced homes.  Pricier luxury homes are still available in large quantities which might explain why the Miami Beach homes supply remains relatively high.

Another reason for the dwindling inventory may be what’s called “shadow inventory”.  These are usually properties that perhaps haven’t been placed back on the market after being repossessed or haven’t been repossessed at all.  Will the Miami Beach homes market eventually follow suit?