Inventory is thin but starting to grow. “Pending” sales and active listings were about equal in number as of midweek, most of those “Pending” sales are short sales and there is no telling how many will actually close. The homes on the tour were clean and the consensus among the agents I spoke to was that prices are down about 5% from august for clean mid range homes. These would be priced $650k-$800k and are usually 2400-3200 sq ft homes on 1-3 acres. More REO are showing up in “Good Areas”, most are marginal in one way or another. Smaller, on the edge of the good neighborhoods, major unpermitted work and/or poor quality work. Not all, some are in decent shape and in good locations. Prices for REO seem to be set by people unfamiliar with the local markets. Pricing in West Sonoma County is extremely tricky because there are ferquently no comparable sales. When a development consists of a dozen homes more or less and there have been no sales among them for 5 years or more it gets tricky. You might find an infill development of similar size within a few miles that does have a sale or two but the adjustments are not always easy to make. Clean, well priced homes are moving within days and buyers I have spoken to are both confident that plenty of inventory will show up and ready to buy when they see what they want at the price they want.