Living in CV…With a statement like that, you should really should fire your realtor. I'm not even kidding. It's insulting to think you wouldn't have the intelligense to look things up at websites like redfin, sdlookup, houserebate.com. to see there are plenty of 1.0-1.5 million homes. There are some homes under 1.0 in carmel valley. The fact that you have a $500k spread on what you're looking for ranges a huge range of homes in CV from "low" end to "higher" end in CV standards.
In fact, CV has a glut of homes rights now. I recommend you do your due dilegence yourself, and just use the realtor to step inside the home. Don't listen to what he/she is really saying about "there's not just enough out there".
But again, I think you really should fire your agent. Obviously, someone isn't being honest.