Since it’s low point of March 2009, inventory of detached homes for sale in Saratoga, CA  has taken two major reversals in trends.  Inventory rose steadily to high levels through the summer and then started to take a pronounce drop after Labor Day. 

Meanwhile, the median listing price was stable through August and then started an upward surge.  This does not mean that prices of individual homes have not continued to drop as they found market accpetance, but there were relatively a greater number of higher priced homes as lowerer priced homes were being absorbed. 

Real Estate Market Chart by Altos Research www.altosresearch.com
For home buyers this relative scarcity means there will be greater upward pressure on home prices, particularly in the more affordable range. Home sellers need to remain realistic about the market value of their home so it sells quickly rather than languishes in the market.