Low interest rates

I have a client who has been looking for a Rincon Valley townhouse/condo for the past 4 weeks. Every weekend I print up everything that is available to go look at. Every week I notice there is less and less inventory in Rincon Valley (under $200,000) to view. We started out with about 15 homes, and we are down to 4 "active" listings. We wrote an offer on a short sale. My client asked why all of a sudden there was drop in inventory. I told him it was because interest rates are so low. I believe we are truly at "the bottom" and with summer around the corner we will see price increases.

Below are the current averages per Freddie Mac.