Hansson says the dearth of properties on the market is the result of several factors. For one, he says, sellers accustomed to sporting higher rental rates, which justify higher sales prices, are now dealing with declining rental rates. As a result, those that bought in the past few years are finding that their values may be similar or less than their purchase prices.

As well, says Hansson, buyers and lenders are waiting for a definite sign of stability in the rental market, as they cannot justify the purchases of any properties with high vacancy factors until there is stability.

"Many buyers are anticipating numbers of properties heading into foreclosure in the first quarter," he says. "This is where they believe they would have the best chance to obtain properties at true discounted and "value added" prices. Many sellers may begin to realize that the prices of the last several years will not be seen any time soon and begin to re-think their short and long term hold of their properties. Finally, buyers that must invest may decide to buy into higher priced properties to avoid the sale of other properties that they may fear could continue to lose value if they do not close; and also, to avoid tax implications for not closing on other properties in trade."