While homes sales and median prices were both higher again in January, the number of single-family homes for sale has declined dramatically - approximately 28% from last year at this time and 40% compared with the 2007 peak. Click here to see the full report.

What does this mean you? Homeowners have more equity; fewer are underwater making refinancing possible for more people who may not have been able to before. Higher prices means more people can afford to move up. Move up buyers are a driving force in the market again.

Fewer homes for sale means less competition for sellers, making this a good time to put your house on the market. Don't worry about selling before you find a new home, a lot of buyers are willing to delay closing while you find one. Sell now and you'll be prepared to buy.

Buyers, you have a lot of competition! This means you need to be prepared to move forward quickly. Waiting to see the perfect photo on the Internet won't get you there. You'll need an experience buyer agent to educate you about the area and the buying process so you know what to expect, as well as refer you to a lender, homes inspector, attorney, insurance agent, etc. Having your whole team in place will help you make the right decisions and complete each step in the buying process without delays. The market has shifted. Time is of the essence; be ready to move!