I described it as a "market-mix change" , rather than an overall drop in values.  In other words, in a market that once had 60% or more of its sales above $800,000, and now only has 5% of its sales in that price range, the median price drops, but the value of homes above $800,000 does not drop at the same rate. 

Many consumers read media reports and have the impression that their house value has dropped a lot more that it really may have.  For example, in San Mateo County, the median prices of homes countywide have dropped 40% in the past two years. If someone bought a $1.5 Million house 2 years ago, that house is not necessarily worth only $900,000 now.  As a matter of fact the actual median for homes price between 900,000 and 1.5million in the same period is only 5%...that’s right, while the media would report a 40% drop in median prices if you own a home worth between 900,000 and 1.5million the media has dropped only 5%...not to “newsworthy” is it… I contend that its value is higher because the median pricing reports have an abundance of low-priced homes dragging the median down.

We are seeing general market improvement every week….if you have questions about whether to buy, sell or refinance and are in the San Francisco Bay area….get in touch with me by phone at 650 325 7877 or email me at russ@bayareateam.com.You can search for Bank Owned and Short Sale homes listed in the multiple listing service in the bay area by visiting www.allbayareabankowned.com .  Our home loan website is www.bayareateamhomeloans.com.