Half as many homes in Vallejo, Calif., went into foreclosure in January, but the area is facing another challenge: homeowners holding onto their homes for dear life.

The Vallejo Times Herald Online says the San Francisco-Bay area city is dealing with a dwindling supply of homes for sale.

Why? The paper cites local Realtor Linda Cook as saying:

Foreclosures are certainly down across the board, but it also seems our January data shows the number of sales transactions is also down.  What's going on is we have no inventory whatsoever. I have a client who wants to live in Vacaville, and I left info about us both on more than 800 doors and got three responses, and only one was serious. People are just not willing to sell their houses right now.