The Press Telegram has this report on Long Beach. "One million dollars for a home in Long Beach nowadays doesn't sound far-fetched following a five-year market expansion with repeated double-digit percentage increases in housing prices. In fact, the run-up in home prices has forced a change in the definition of what constitutes a luxury home. The index tracks homes whose value in 1995 were $1 million."

"But as the once red-hot housing market continues to cool the slowdown is affecting all homes, including luxury homes. (Banker) Katherine August-deWilde said luxury home prices may experience some price decreases in the year ahead, but she sees no signs of an inversion."

"'I would call it more of an adjustment,' she said, adding that any deflation in the luxury market is better described as 'a souffle as opposed to a bubble bursting.'"

"More and more sellers of luxury homes are already cutting prices, said Keller Williams Realty agent Richard Daskam, who has moved several million-dollar listings in the past few years. More and more sellers of luxury homes are already cutting prices, said agent Richard Daskam, who has moved several million-dollar listings in the past few years."

"He recently took over a four-bedroom, three-bathroom listing in Signal Hill that was on the market for six months with no offers. He knocked $100,000 off the $1.5 million asking price and it sold in 45 days."

"'The slow down in the high-end million-dollar homes is definitely due to a slowdown in the middle-of-the-road median homes, because these are the buyers who have been moving up to these homes,' he said. 'What I'm getting from my buyers who are in the million-dollar range, is 'If I have to come down on my home, then I expect the seller to come down in price also.' It's not necessarily dollar for dollar, but they are expecting some adjustments.'"

"Neighborhoods that will likely see home prices fall below the $1 million mark first are those areas where home prices are not traditionally high, Daskam said."