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I was having same issue with CentOS 7.1 3.10.0-229.11.1.el7.x86_64

Error @ /var/log/nova/nova-conductor.log

  File "/usr/lib/python2.7/site-packages/oslo_messaging/rpc/server.py", line 142, in inner
    return func(*args, **kwargs)

  File "/usr/lib/python2.7/site-packages/nova/scheduler/manager.py", line 86, in select_destinations
    filter_properties)

  File "/usr/lib/python2.7/site-packages/nova/scheduler/filter_scheduler.py", line 80, in select_destinations
    raise exception.NoValidHost(reason=reason)

NoValidHost: No valid host was found. There are not enough hosts available.

Error @ /var/log/nova/nova-compute.log

[instance: 5676465f-6c5a-4460-9e35-6cd0a2b74c53]     rv = meth(*args, **kwargs)
[instance: 5676465f-6c5a-4460-9e35-6cd0a2b74c53]   File "/usr/lib64/python2.7/site-packages/libvirt.py", line 996, in createWithFlags
[instance: 5676465f-6c5a-4460-9e35-6cd0a2b74c53]     if ret == -1: raise libvirtError ('virDomainCreateWithFlags() failed', dom=self)
[instance: 5676465f-6c5a-4460-9e35-6cd0a2b74c53] libvirtError: internal error: process exited while connecting to monitor: 2015-08-15T11:05:42.687877Z qemu-kvm: -chardev pty,id=charserial1: Failed to create chardev
[instance: 5676465f-6c5a-4460-9e35-6cd0a2b74c53]
[instance: 5676465f-6c5a-4460-9e35-6cd0a2b74c53]

I reinstalled centos two times and was having same issue..

What helped me to solve issue was codebauss's method

https://bugzilla.redhat.com/show_bug.cgi?id=1138502

Modify your /etc/fstab and then restart your server:

vi /etc/fstab

You will/should see a line starting with devpts. Copy the line just in case something goes wrong and comment out the original. Modify the copied line to look like this:

devpts        /dev/pts        devpts        gid=5,mode=620    0    0

The error gone, and I was able to create VM without any issues