Most of sub-700k homes appear to be condos. Just last month someone paid 498k for a 1700 s.f. condo in 4S ranch. Does not inspire confidence in imminent major declines. 10228 Lone Dove (sold 789k 11/07) is the cheapest “real” big detached house.

What seems to be happening from your numbers is that there is some degree of contraction at the extreme upper end. So, houses that were outrageously expensive (900K+) are becoming simply too expensive (700-800K) but the magic 700K barrier can’t be broken.

I wonder what kinds of people are buying all those houses.

They can’t all be move-up buyers, can they?

Do we have enough people who can really afford 100K downpayments, 600K fixed-rate mortgages, 7K/year property taxes, and 5K/year mello-roos?