The spring season is in full swing now, which normally means demand should be strong and supply should be falling fast.
Neither of those quite describe the current situation. Demand is indeed getting stronger, but from the unusually weak level at the start of March, it has a long way to go before it could be described as normal, never mind strong. Supply is leveling off and we probably saw the first half-year peak for total active listings on March 29. We saw a lot of listing cancellations in March - the highest number since August 2011. We also saw the highest number for expired listings since June 2011, excluding Decembers which are always abnormally high months for listing expiration. As a result we started April with fewer active listings than we ended March. However, cancelled and expired listings have a habit of coming back as new listings. The overall picture for supply, when adjusted for seasonality, is that it is still growing. It is definitely shrinking for all price ranges under $200,000, but it is also still expanding for all price ranges between $200,000 and $1,000,000. The mid-range buyer's choices are increasing, which is very unusual for the spring. New listings are arriving at a 10% faster rate than in 2013 and they are sticking around longer before they go under contract.
The buyers we do have are mostly taking their time and showing little sense of urgency.
The good news is that sales are picking up as they should between February and April and average and median sales prices are moving higher as the volume mix shifts towards higher end homes and away from entry level homes. This doesn't mean that home values are increasing. These are not moving much. It is just that higher end homes are a higher percentage of completed sales (driving the average up) and the cheapest home sales are getting scarcer (driving the median up).