Are Strong local signals needed to rank high organicaly for local results

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I am going after a fairly competitive market in a large city. 500k+ population and I am on the first page. I have noticed though that when I search I show up around 7/8 in the results, but when I change my city search location in Google that is shows me at the top in the 1/2 spot for my keywords.

Is this because I dont have any links coming from sites like yelp, yellowpages etc.... What could cause this discrepency. I've noticed that when I do searches using any out of state city that I show up at the top, just not in the city where I am targeting. Any explanation for this? Any help would be greatly appreciated.
#high #local #needed #organicaly #rank #results #signals #strong

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