Google has always tested and will continue to test different experiments with their search results. They closely monitor CTR in these experiments. If you search for local search terms, you should expect to see local results since searchers click on the local listings.
Google has been taking gradual steps towards delivering only paid ads on the first page of the serps, when it has enough Adwords users to do so, for quite some time. Seeing just four organics on a search query would not surprise me nor should it surprise anyone else at this stage. As more of Google's users defect to other search engines/sources, as they are doing, I'm sure that Google will be pressured to increase the amount of real estate given to paid ads in an effort to satisfy their shareholder's appetite for profits.