“I’ve been following the daily listings in Temecula, and have been surprised how many $1 million+ properties come up. From 1-3 per day.”

.. I don’t think this is a sign that the high end is defying gravity, but just the opposite, that more high end owners are selling for whatever reason (maybe the same reasons as everyone else) and the inventory/competition is growing. This only means that prices here must fall too. We have seen a decent pull back in the mainstream track home, I suppose its now time to see a similar effect on high end homes.