Here is what I learned. Data in the Modesto Market Trends section on Trulia is highly suspect. For example Trulia reports sales for the previous quarter Jan - Mar '08 as 1340. This is up +78% from the frist quarter of 2007 and +37% for the previous quarter. This is grossly at odds with data released by the California Association of Realtors with just last week reported March sales down 24.5% statewide. The CAR story reported something called "closed escrow sales" which must be more in line with what I think of as a sales transaction while Trulia is using transfer of deeds which is capturing foreclosure activity.
As for prices both Trulia and CAR data show drops of roughly 33% for median home prices in Modesto over the past 12 months. So in the aggregate Trulia is reflecting market prices but individual properties may not reflect the current market because of the subjectivity of assigning values to foreclosures.
Does that answer your question?
I'm a stock investor investigating and trying to learn about real estate. In my world if someone asks me what the market is for Washington Mutual I don't say I have shares I would like to sell at $15. That might be true but it is irrelevant to fact that shares in the current market are trading at $12.50.
Hope this helps,