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An encouraging sign for the South Florida housing market: The numbers of homes and condominiums for sale continue to shrink.Palm Beach County had 21,737 listings in July, down 23 percent from July 2010, according to Realtor.com. Broward had 14,932 properties for sale, a 36 percent decline from a year ago.In June, we wrote that the shrinking inventory was giving sellers more power than they’ve enjoyed in years.The glut of homes on the market helped fuel the housing bust during the past several years. Reducing the inventory is a key …