AVERAGE sales price for home here was $690,500 in 2007

Every homeowner these days reads the frequent scare stories about foreclosures, sharp drops in property values and the assorted miseries ascribed to overly-aggressive mortgage loan sharpies. In many areas, it presents an ugly picture. Some of it was due to the speculative fever caused by the run-up in real estate prices. Some of it was wrapped up in the "creative" mortgages and home equity loans pushed on the unsuspecting and gullible.

The most current statistics, however, show some rays of sunshine for anxious Milpitas homeowners.

In comparison with last year, the median price for a new or resale home sold locally only went down 2.8 percent. This is in contrast with a 9.8 percent drop countywide for homes of various types. The figure for the average single-family price was $690,500, which is higher than most of the county.

The number of Milpitas homes sold was 398, which represented a drop of 30 percent from a year ago. Sellers locally are finding it takes longer than before to find a buyer, but with patience the home will bring very close to the price the seller was seeking.

The reasons are varied but one aspect continues to be evident. Milpitas homes provide more for the money with fewer dollars per square foot required. The most recent figure was $371 contrasted with a county average of $448 for single-family homes.

It also remains true that this area, with its excellent school system,

its newer public facilities and infrastructure of all types, attracts buyers. We've also got lots of good transportation choices although traffic isn't much better than anywhere else in our bustling valley.

So there are some real grounds for optimism, even with the doom and gloom scenarios that media seems to be saturated with these days.