Prestige no protection from price drops

Inspired by Lowball! over at the Northern NJ Bubble and some reader suggestions, I put together a list of some recent sales that stand out for their price cuts. I don't have access to this info on a searchable database - I just went to Coldwell Banker, logged in, and searched MLS for recent sales in some prestigious Boston suburban towns. Plenty of homes are still selling for close to their list prices. But even in these desirable areas, sale prices are consistently below asking, and some much lower. I'm not able to access info on whether homes were relisted at lower prices before they sold, so the drops could be even more significant from original asking prices. Here are some recent standouts:

NEWTON , MA 02459
MLS# 70270545
Ask: $554,900
Sale: $450,000 (1/13/2006)
19% reduction

NEWTON , MA 02459
MLS# 70283827
Ask: $699,000
Sale: $625,000 (12/30/2005)
11% reduction

NEEDHAM , MA 02492
MLS# 70256995
Ask: $729,000
Sale: $655,000 (1/5/2006)
10% reduction

LEXINGTON , MA 02421
MLS# 70194581
Ask: $2,195,000
Sale: $1,730,000 (1/6/2006)
21% reduction

LEXINGTON , MA 02420
MLS# 70299424
Ask: $669,000
Sale: $600,000 (1/12/2006)
11.5% reduction

WELLESLEY , MA 02482
MLS# 70223416
Ask: $575,000
Sale: $450,000 (12/29/2005)
22% reduction

I'm not a big fan of anecdotal evidence, so I won't make too much out of this. But these numbers do emphasize that risk in this market is not restricted to less desirable neighborhoods. Most of these sellers no doubt made plenty when they sold, even at the reduced price. But if you moved in next to them last summer, they just set the new comps for your neighborhood.