Did different houses cause it

Using straight up median prices as I have been can be misleading. If only cheaper homes were selling than it would overstate the drop in prices.

However that does not seem to be happening on a large scale. Not only are expensive homes in California selling better than they have for years, but the Case-Shiller price index, which follows the price of the same home over time, shows the same effect. Houses nationwide are near prebubble levels, while Southern California has some ways to fall.

Another blogger made up a good graph of inflation adjusted home prices showing this: