On the route to Sophia’s school there’s a house that I love to look at every time we walk by it. It’s surrounded by a stone fence, about five or six feet high, with an iron gate on to the street. There’s a giant playset for kids — as high as a two-story house, made out of redwood, with lots of Habitrails for crawling around. And the house itself (the adult Habitrail) is gorgeous on the outside. I looked it up on mlslistings.com, and discovered the house is as big as it looks, with 5500 square feet and more than a half acre of land. I would love to see the Open House on this one.

Asking price? $4,750,000.

But — believe me, I know how this sounds — I can completely understand that price. That house is quite a package A 100-year-old mansion, sitting on a fantastic plot of land, in an enviable part of an expensive town.

The house two doors down from us just went on the market. It’s 3 bedrooms, 2 baths, less than 2000 square feet. It’s beautiful inside, from the photos, with lots of stone work. And apparently it has more land that I would have guessed from the outside, but probably not a bigger lot than we’re on.

Asking price: $1,675,000

Two words: holy. crap.

The above-the-fold in the San Jose Mercury News today was the Bay Area’s current median house prices.

Santa Clara County’s sizzling housing market cooled a little bit last month, but the median price of a single-family home jumped to a record of $714,250, bucking speculation of a downturn or bursting bubble.

That’s a 19 percent increase from October of last year, when the median price was what now seems a modest $600,000.

The article goes on to say that things are cooling down, the market’s reaching equilibrium, the same overnight-craziness isn’t apparent.

On the up side… if you do manage to cash out of a California home, you can go almost anywhere else in the country and buy the side of a mountain.

On the down side… what’s the monthly payment on a $714,250 house? Who the hell can afford that? And how far are people going to have to drive in order to live somewhere affordable? Or more affordable than this, at any rate?

We’re not in this house for the immediate value it holds — we love this neighborhood, love the walkability of it, are happy as little clams to be here and have the kids here.

Which is good because… when things come back to earth, it’s going to hurt. A lot. And we won’t be going anywhere anytime soon.