Hello Jason and thanks for your question.
As the others have mentioned, there are 10 homes priced at under $1 million currently listed in Palo Alto; however, none of these appear to be improperly priced or priced as a bargain. In most cases, there are reasons why the homes were priced below $1 million.
If you are looking for a good home that is reasonably priced, then experience would dictate that this home may be best found in January. Typically--well, at least for me for the past four years--I've found home inventory picking up the first part of January and homeowners being a tad more receptive to price adjustments at that time. However, if you're looking for a real "bargain" where the price is outrageously low, I fear that even with the influx of foreclosure homes, you'll be unlikely to find such a home in areas that are still considered highly desirable by buyers, such as Palo Alto, Los Altos, Sunnyvale and Cupertino.
Good luck!! Give us a shout if you need any help!
Grace Morioka, SRES, e-Pro
Area Pro Realty
Tel (408) 426-1616
Specializing in Sunnyvale, Cupertino, Palo Alto, Los Altos