Boots-on-the-ground perspective for the end of February

Here's my perspective on our local market. Inventory is very, very low for single family homes under $600,000. I'm seeing properties go under contract in a short amount of time -- a few days, even -- and often in multiple offers. Of course "under contract" is relative when you're talking about REOs and short sales, but you get the picture.

I attribute this to favorable loan conditions for first-time buyers. FHA loans ask for only 3.5% down (which can be a gift from a relative) and let the seller contribute to closing costs. Interest rates are low. And there's an $8000 tax credit for first time buyers.