Silicon valley finally cracks !

After a relentless advance in home prices, the median home prices drops a whopping 6% in a month. This is the first significant drop in a looooong time.

http://www.sanjosepr...newsletter.html

The key to the smoke and mirrors price bouyancy is clearly stated in the report

Prices of single-family, re-sale homes and condos continued to rise in 2007. Of course, the numbers are a bit deceptive, especially in this market. First, the number of home sales above $1,000,000 has gone from 11.1% of total sales in 2003 to 35.1% in 2007. This has the effect of skewing the numbers upward.