REAL ESTATE REVIEW

Market Sees Significant Correction

During the first three months of 2009, the reported average sales price of a home in Atherton rose to $2,714,714 from $2,410,455 the previous quarter. The second quarter saw another increase, with an average sale price of $3,432,375. By comparison, the average sale price in the second quarter of 2008 was $4,464,750, over $1 million more than the 2009 figure. There were only 7 reported sales in Atherton during the first quarter of 2009; this figure is approximately half of the sales that closed during the same quarter last year. In addition, the 17 reported sales in the second quarter, when measured against the 22 reported sales during the same three months in 2008, signal that the Atherton market has slowed dramatically.

Homes are lingering on the market longer than they were at the end of last year although there was a slight improvement in the first quarter. Unfortunately, the second quarter showed an enormous jump up to 141 days on the market. Inventory continues to increase in Atherton, particularly in the high end of the real estate market. As of the middle of July, there were 37 properties listed for sale in the Multiple Listing Service, ranging in price from $1,650,000 to $16,800,000. Over one third of these properties are listed above $5 million.*