The prices of single family homes will not go this low anytime soon in this area. If you are considering a townhome you may find something. But as far as the inventory going up in this zip code in the fall? It may very well happen. I would be concerned about interest rates creeping up and if you find something in this zip code you should move quickly. This is a very highly sought after area. I would not hold your breathe on prices going down in this area in the fall.
First things first. Get pre qualified to buy your home in that price range. So when the perfect home does become available you are ready to buy it before someone else does. How will you know when a new listing comes available? There are many websites you can go to and register for free email alerts.
This is a great website that is free of any charges and will deliver to your email box exactly what you are looking for. Go to; http://www.ServingSantaClaraCounty.com and tell them you want FREE email alerts.
Yes, there will be more inventory. Property values are likely to continue to go down slightly through the summer (and rest of year). However, because your price point/requirements limit your home options, I would not pass on a property that meets your criteria simply because you think that prices may be lower. If you like it, I would go after it.