The high end market in town is dead. Here are two excellent examples:
This home was listed in Dec 2005 for $1,150,000. It feel out of escrow and is back on the market for $995,950. That is a 14% haricut.
This home was listed in January 2006, also for $1,150,000. After several prices cuts and gimmick sales tricks (free pool, country club membership), they have decided to drop the price to $949,000. Nice 17% buzzcut!