I don’t think is so much that prices are staying high as it is that so few houses are actually selling, so there really is no clear trend.

There were two houses for sale on Lourdes Terrace all last fall and winter. (near bottom of hill, just below the condos) Both were vacant and listed around $1m. I thought that the owners would have to give in an lower prices, but they pulled them off market and I think both were rented out.

There was a “must sell” flip gone bad on Madra (5980?) that finally sold at the end of 2007. It was first listed at up to 1.6m, and sold for less than $1m. I think it was about 3500 sq ft and some very extensive rehab work was done there.

I think this is the pattern your seeing in a lot of older neighboorhoods. The “must sells” get marked down until they seem like a value compared to prior comps, then someone scoops them up. Those that don’t need to sell refuse to budge.