26% of homes on the market are in the $300,000 to $500,000 range.
As the price goes lower, so do the choices of inventory. This a tough news for the first time home buyers who are trying to take advantage of the $8000 tax credit.
This part of the market is experiencing a very strong influx of buyers, with most homes (if they are in good condition) receiving multiple offers.
It's so hard to explain to a first time buyer that the price they are looking at is really the "starting price" in a bidding war.
Total Combined Number of Homes for Sale Graph
This fact, combined with the surge in the market in the lower end continues to make finding a home very difficult for some.