Report Names Bay Area’s Most Expensive Residential Markets

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.