I’ve been closely watching $2M range homes in Rancho Santa Fe & Olivenhain (rural Encinitas)markets for the last 15 months. I’m still seeing mostly price reductions week after week. A number of the properties I’ve been watching have sold, but so far I haven’t had to kicked myself over any missed opportunities. I think the high-end market will drop another 10-20% and it will be AT LEAST 12 months before that happens. At this time, I would be very reluctant to buy anything priced at 2004, or later, levels. My guess is that we will see 2002 prices (not factoring in inflation) by spring of 2011. Keep in mind that if a person buys now with 20% down and prices drop even 10% they have lost 50% of their investment. A previous poster made the point about the huge home equity gains, and easy jumbo loans in the past. These forces are no longer present to drive upgrades to the higher end market and it takes a long time for most people to save up for a down payment (or to make up for a investment loss) if they have to do it the old fashined way of banking their excess dollars & coins the end of the month.