Even Celebrities Hurt by Housing Slump

Television star Wilmer Valderrama had to accept $200,000 less for his five-bedroom home in the relatively unfashionable Valley neighborhood of Tarzana. He sold the house in January for $1.75 million.

Johnny Carson sidekick Ed McMahon is also having real estate troubles. He put his 7,000-square-foot Beverly Hills home on the market In July 2006 for $7.7 million. He has since reduced the price three times, and the house is now selling for $5.7 million.

At the $20 million-plus end, it's not unusual for houses to stay on the market for months at a time, because there are so few potential buyers. Sloane was originally trying to privately sell a historic Neutra home on Mulholland Drive, owned by Vidal Sassoon, for $25 million. When an offer fell through, he lowered the listing to $20 million. That was a year ago.

"There's usually a waiting list for homes over $20 million," says Sloane. "Now, it's slowing down a tiny bit--for the first time in years."