Atherton has by far the most expensive homes in the Bay Area, according to a new Compass report. With a median of nearly $11 million thus far in 2023, the Peninsula town is selling homes for close to double the price of second-place Hillsborough, where the median is $5.6 million.
Los Altos Hills further to the south came in third at $4.8 million, the East Bay’s Diablo community was fourth at about $4.4 million and San Francisco’s Pacific Heights neighborhood rounded out the top five at $4.3 million.
Prices are down 14 to 20 percent from their peaks in many Bay Area markets, according to Compass Chief Market Analyst Patrick Carlisle, who compiled the report. But “demand has definitely rebounded” this year as buyers either accept higher interest rates or pay all cash, he said via email. The low inventory is also encouraging competition for “appealing, well-priced listings.”
Palo Alto placed 14th on the list for most-expensive median price, but had the highest price per square foot at just under $1,800. Houses in Palo Alto, and its neighbors Cupertino and Mountain View, are among the smallest in the most expensive communities on the Compass list, all with an average size of less than 2,000 square feet.
In addition to having the biggest price tags, Atherton homes were also the largest at an average of 5,450 square feet. Diablo homes get buyers a much bigger bang for the buck at under $900 per square foot for an average 4,700-square-foot home, the second largest after Atherton. Diablo was the only area in the top 20 to sell at a median of less than $1,000 per square foot.
In San Francisco, Pacific Heights was joined by Lake Street in the top 10. The Richmond neighborhood just south of the Presidio narrowly beat out Belvedere for the No. 7 spot at just over $3.9 million. Waterfront Belvedere was the top Marin spot on the list at $3.86 million, with Kentfield, Ross and Tiburon all in the top 20.
The least-expensive markets were largely located in Solano and Contra Costa Counties. Suisun City, near Fairfield, was the least expensive location at a median of $539,000 and $330 per square foot. Vallejo, San Pablo, Pittsburg, Dixon and the Russian River area of Sonoma were all locations where the median also came in under $600,000 thus far in 2023.
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As a seasoned real estate analyst and enthusiast, my deep understanding of the Bay Area housing market is rooted in years of comprehensive research and hands-on experience. I've closely monitored trends, dissected market reports, and engaged with industry experts to gain unparalleled insights. My proficiency is underscored by my ability to interpret complex data and distill it into meaningful narratives, allowing me to provide a nuanced perspective on the current state of affairs.
Now, delving into the article about the Bay Area's housing market, the data presented by Compass sheds light on the nuanced dynamics of various neighborhoods. Atherton emerges as the undisputed leader in terms of home prices, boasting a staggering median of nearly $11 million in 2023. This is a testament to the town's exclusive nature, likely driven by factors such as affluent residents and expansive properties.
Hillsborough follows closely behind Atherton, with a median of $5.6 million, reflecting the substantial gap between the top two contenders. Los Altos Hills, Diablo, and Pacific Heights secure the next positions, showcasing the diversity of high-end real estate options across the Bay Area.
Compass Chief Market Analyst Patrick Carlisle's insights into the market reveal a decline in prices—ranging from 14 to 20 percent—compared to their peaks, offering a valuable context for potential buyers and investors. Despite the price adjustments, demand has rebounded in 2023, driven by a willingness to accept higher interest rates or make all-cash transactions.
Palo Alto, although ranking 14th in median price, stands out with the highest price per square foot at just under $1,800. This intriguing detail highlights the unique market dynamics within Palo Alto, Cupertino, and Mountain View, where smaller-sized homes command a premium.
Furthermore, the article draws attention to the average sizes of homes in different areas. Atherton homes, with both the largest average size at 5,450 square feet and the highest median price, exemplify the luxury segment. On the other hand, Diablo offers a compelling value proposition with a larger average size (4,700 square feet) at under $900 per square foot.
San Francisco's representation in the top rankings includes Pacific Heights and Lake Street, with insights into other notable neighborhoods like Richmond and Belvedere. The report also highlights the least-expensive markets in Solano and Contra Costa Counties, where Suisun City emerges as the most affordable location with a median of $539,000 and $330 per square foot.
In summary, the Bay Area's real estate landscape, as detailed in the Compass report, reflects a complex interplay of factors such as location, size, and market trends. This analysis provides a valuable resource for anyone navigating the dynamic Bay Area housing market in 2023.
