Yeah, my area is in the top 100, but as Brat says, SV is a different animal. Median price for a house is $1.3 million, which is down 13%. However median household income is only $138k so how people afford it puzzles me. I think the price has dropped over the last year because as my neighbour who is a real estate agent explained to me, volume of houses selling has increased but they are at the lower end of the market. I have only seen 1 house for sale in my zip code for less than $1 million and that is a short sale. Even a dump in this zip code would go for $1 million plus, the house we live in is a knock down that last sold for $1.1 million in 2004. However, there are a lot of houses in our area for $3m plus that have been sitting on the market for a long time.
Brat is also right about many houses being passed down the line. Our RE neighbour inherited their house from her father who inherited from her grandmother. Her tax base is on $450k whereas their house is easily worth $2m.