I think this is the key, no-one wants to sell their properties for what they are currently worth. Sellers need to get realistic if they want to sell. Buyers are renting as they don't see value at current prices.
I've sold two properties in the last year, there's plenty of buyers still out there, but they're taking a stand!
sales are rocketing tho...look at the volumes. Buyers are renting because the population is growing and they either dont want to buy or cant because stocks have dropped too low. So in a sellers market it is now the buyers who need to get realistic - if prices go up there may be some more supply, although it is difficult to create stock when builidng has been and is so depressed.