Inventory is down, and as long as demand driven by re-bound buyers (people who sold their homes during the mortgage crisis who can now qualify) are taking advantage of low interest rates remains the same, that only means prices increase.
March showed us more closings than any other single month in the entire year 2014 and pending sales are also up.
As always, the media is behind the 8-ball on reporting and only now will be telling us that the real estate market is hot. If a home is priced right, it goes rather quickly, and this is coming from first-hand experience in the trenches with buyers who are having a hard time negotiating contracts with sellers. Sellers control the market right now.
If you want it, you need to be able to jump to action quickly, which means you need your financing in place before you even think about buying.