Typical of supply-and-demand, home sales in California have fallen 16.5% as prices have risen. With fewer properties on the market, including a reduced foreclosure and shadow inventory, prices are being driven up. But according to the LA Times the types of homes selling has also changed: Inventory of less expensive homes have dropped, due to competition between investors flipping houses and first-time home buyers.

Median prices in California are up 2.1% from August, at $287,000 (but 15.3% up from September 2011). Short sales are up in September, accounting for 27% of homes sold in the month.