Co-written by Mary Jo McCarthy and Rich Bassin
Although the total number of sales in Atherton was down for the 3rd quarter by approximately 28%, as compared to the same time period last year, the sale of high-end luxury homes dominated the market.
There were 10 sales in the 3rd quarter, including 2 properties that sold for “land” value. Of the 10 sales, 6 properties sold for $10M+ and 4 of those properties sold for $20m+.
There is a correlation between lot size and a premium price. The median price per square foot for homes larger than 6000sf in Atherton is approximately $1417/sf. Of the four properties that sold over $20m, those homes on the rarer lot sizes of 1.2-3.5 acres, sold at the premium price of $1786-$2287/sf. Per the graph showing lot size distribution in Atherton, as lot sizes increase above 1 ¼ acres, the number of lots available in Atherton significantly decreases.
It is notable that as of today, taking into account 5 sales in early October, 53% of the 3rd quarter activity has occurred in the last 33 days. That is indicative of pent up demand coming to grips with limited supply. Buyers waited, sellers reduced their prices, and then the buyers negotiated hard and got their properties. What looked to be a summer doldrum market turned active.
Looking forward, there are 33 properties on the MLS with the median days on market being 63. Two-thirds of these properties are priced under $10m. If the third quarter is an indication of market activity, then there may be reason to be optimistic for both buyers and sellers.
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