Maybe because I am a real estate attorney, people always ask me about real estate prices and the economy. What I know is mostly anecdotal and it seems like the old adage from Realtors TM about "location, location, location" seems to be true because check out this recent residential price survey from the SF Chronicle on Palo Alto:
"In January, the median list price in Palo Alto was healthy indeed:
$1,424,000. Meanwhile, the selling median was $1,162,000 (both numbers
are almost twice that of SF's!!)."