The financial crunch is still impacting liquidity in the upper ranges.  Demand is off by more than 30% compared to last year for all homes priced above $750,000.  With demand off in the upper ranges by more than 30%, do not be surprised when the media reports a significant year over year drop in the median sales price.  With the lower ranges hot and the upper ranges not, the median value will be much lower.  The average pending sales price a year ago was at $869,000 compared to $605,000 today.  This is partially due to the decline in prices, but it also has a lot to do with a major decline in demand in the upper ranges.  For the first three quarters of 2007, prior to the beginning of the financial crunch, the number of sales above $1 million in all of California was only off by 3% compared to the prior year.  For homes below $1 million, sales were off by almost 30%.  A month after the start of the financial crunch, September of 2007, sales above $1 million were down 26% compared to the prior year.  The upper ranges have been impacted ever since.   As liquidity is restored in the upper ranges, do not be surprised by an increase in demand in the upper ranges and an increase in the median sales price.