Why not chop a cool million off the list price?

Back in May, I posted about this pretty little number in Encino. At the time, it was listed at $7.9M. Well, hold on to your horses:

5266 AMESTOY AVENUE, Encino, CA 91316
MLS #: F1754357


Price Reduced: 04/17/08 -- $7,974,000 to $7,495,000
Beds: 7
Baths: 10
Sq. Ft.: 9,000
Lot Size: 37,100 Sq. Ft.
$/Sq.Ft.: $766
List Date: 02/14/08
Price Reduced: 07/03/08 -- $7,495,000 to $6,895,000

Uh huh. That's a $1.079M reduction over 5 months. But at $766/sq.ft., it's still mighty pricey. Donchya think?