COMMUNITIES | Atherton

Atherton is named for Faxon Dean Atherton, a wealthy trader from Chile, who purchased 640 acres and established the first large estate in the area. The completion of the railroad in 1863 attracted other prosperous citizens of San Francisco, hoping to escape the summer fog. The Town was incorporated in 1923, and adopted stringent zoning regulations.

As a result, Atherton retains the pastoral atmosphere enjoyed by those nineteenth century residents, with majority of properties in this exclusive zip code exceeding an acre. No sidewalks, an abundance of heritage oaks, and a ban on commerce, plus equal access to San Francisco and San Jose have made Atherton one of the most expensive addresses in the country. Atherton has been consistently ranked by a national magazine as one of the top five most affluent cities in the country.

2008 in Review | Atherton

Residential property values in atherton increased once again in 2008, with the average home price reaching $4,282,903 as compared with the average of 2007, which was $4,157,188. This was higher than the previous record set in 2006, when the average price was $4,183,363, and well above the average prices for the previous two years, which were $3,407,260 in 2005 and $3,540,560 in 2004. Surprisingly, the 2008 average is more than $200,000 over the "peak" of the market in 2000, when it was $4,072,355. The average price of a home in Atherton for all of 2008 was $4,282,903 the average sale price in the second quarter of 2007 was $3,825,692, nearly $640,000 less than the 2008 figure.

The median price of an atherton home in 2008 was $3,605,000, $130,000 higher than 2007, when it was $3,475,000 and nearly $350,000 higher than in 2006, when it was $3,256,410. This represents close to an 11 percent increase over the past two years and continues an encouraging upward trend for the sixth year in a row. The median price of Atherton property was $3,000,000 in 2005, slightly above the median price of 2004, which was $2,999,500. Residential property in atherton took longer to sell last year, lingering on the market for an average of 70 days. In 2007 homes remained on the market for an average of 60 days. The 2008 figure is still lower than in 2006, when the time on the market averaged 90 days, though it is higher than that of 2005, when residential properties took an average of 51 days to sell. In 2004, Atherton properties averaged 78 days on the market.

A note of caution: in 2008, the number of sales in Atherton continued to decline for the fifth straight year in a row. in 2008, the total number of closed escrows in atherton totaled a record low of 62 transactions. This was down from 80 properties sold in 2007, which was down from 102 sales in 2006. In 2005, 103 properties closed escrow, while in 2004, 108 properties closed. A comparison of the fourth quarter of 2008 to the fourth quarter of 2007 shows that the number of last quarter sales has fallen by approximately 50 percent.