This neighborhood has a declining market or a buyer's market based upon its dismal Average Monthly Supply. Values would be falling. It doesn't matter whether sales are up or down over last year. It doesn't matter whether the number of homes for sale is up or down. The same thing happens with demand.
Buyers flood the market in spring and summer and retreat in the fall and winter.
Inventory and demand generally peak in July or August and reach their lowest point in January and February. Our real estate market also moves in longer cycles. These cycle are harder to predict. Some experts say they last 7 years. Lastly, whatever goes up will come down and vice versa.