From Bloomberg:

The U.S. housing crisis arrived on July 14 at Stonebrook Court, the 26,000-square-foot Tudor-style home of California venture capitalist Kelly Porter. On that day, four months after putting the house on the market, he cut the price by $7 million.

It’s still for sale.

The mansion sits on 7.5 acres in Los Altos Hills, a Silicon Valley town where Yahoo! Inc. co-founder and Chief Executive Officer Jerry Yang also lives. It boasts a wine cellar, Venetian- inspired ballroom, Italian statuary and swimming pool. At the reduced price of $38 million, the property is a bargain, the owner says.

“It’s worth every bit of $45 million, and I reduced it reluctantly,” said Porter, 45, a partner at Woodside Capital Partners LLC in Palo Alto, in an interview. “We touched up every square inch.”

and:

The economic slowdown led Olivia Hsu Decker, of Decker Bullock Sotheby’s International Realty in Tiburon, to organize a five-day tour of 20 unsold properties in the San Francisco Bay Area that began Sept. 1. More than 100 potential buyers from the U.S., the U.K., France, Switzerland, Taiwan and Macau are attending parties and opera and symphony performances as part of the event, she said.

Decker said she will throw in a $174,100 Bentley sedan for the buyers of Porter’s Los Altos Hills property and of a 10,000- square-foot home on the tip of Belvedere Island with views of the Golden Gate Bridge, listed for $65 million. Owner Robert Friedland, chairman of Vancouver-based Ivanhoe Mines Ltd., bought the place, known as Locksley Hall, in 1995 for $5.5 million and spent $34.5 million on renovations, Decker said.

It’s a tactic already used at lower price points: free cars (generally Mini Coopers) are being handed out with Condo purchases in metro areas nationwide. Still, it’s a telling sign: for over a year it has been reported that the super-luxury real estate market has been isolated from the current downturn. Now it appears that may not quite be the case.

Bentley Blower on the streets, originally uploaded by moosehd2.