Atherton in the Bay Area remains the most expensive housing market in the nation for the eighth straight year – and it’s not even close.
Atherton – home to tech billionaires like Eric Schmidt and sports stars, including the Golden State Warriors Stephen Curry – is the priciest housing market at $7.9 million, easily exceeding the $5.95 million of second-place Sagaponack. N.Y., according to PropertyShark.
The pint-sized community with fewer than 10,000 residents has been home to many well-known residents during the past century, including baseball legends Ty Cobb and Willie Mays to child movie star Shirley Temple. Several dozen – such as venture capitalists Bill Gurley and Ben Horowitz and Hall of Fame wide receiver Jerry Rice – currently call Atherton home.
A very pricey home. But one that has fallen a little during the past year.
The median-home price in Atherton has dipped about 5%, ending three years of $8 million-plus prices. Even with the decline, Atherton is about $2.4 million more than the second-priciest housing market in California – Santa Barbara at $5.1 million.
Top 10 priciest markets in California
| Atherton | $7.9 million |
| Santa Barbara | $5.05 million |
| Newport Beach (92661) | $4.76 million |
| Newport Beach (92657) | $4.72 million |
| Newport Beach (92662) | $4.65 million |
| Rancho Santa Fe | $4.55 million |
| Santa Monica | $4.41 million |
| Los Altos (94022) | $4.3 million |
| Los Altos (94024) | $4.2 million |
| Beverly Hills | $4.01 million |
Source: PropertyShark
California boasts seven of the 10 most expensive ZIP codes in the nation, and 18 of the top 25. The Golden State has 80 of the 100 priciest markets, about four times more than second-place New York.
Newport Beach – another community for the rich and famous in the state – has the sixth through eight most expensive markets, each in the $4.7 million range (see table for the top 10 priciest ZIP codes in California).
Americans and Californians favor rent control – the issue is the oversight
With Election Day right around the corner and bond measure organizers and candidates fighting for votes, here is something a large majority can agree on – rent control.
More than four of five Americans favor rent control, regardless of whether they are homeowners, renters, Democrats or Republicans, according to a just-released Redfin survey. Almost as many (78%) people support rent control in California.
A Los Angeles apartment building. SHUTTERSTOCK
But oversight of rent control – such as state or local government – is an issue with voters, at least in California.
Proposition 33, which would expand local government’s authority to enact rent control in California, has an uphill climb in the final weeks before the election. About 54% of likely voters oppose the proposition, according to the Public Policy Institute of California.
Democrats and renters favor Prop. 33, but Republicans and homeowners are strongly opposed to the measure. A majority of independent voters also plan to vote against Prop. 33, according to the PPIC.
Other polls have found similar results.
RENT CONTROL ‘EXACERBATES THE SUPPLY SHORTAGE’
So, Californians like the concept of rent control but oversight is the sticking point.
Now, many economists and housing experts oppose rent control, arguing that Proposition 33 – and previous measures – would reduce apartment construction down the road because of building costs and smaller profit margins. Rent control would likely decrease the number of apartments available, including affordable apartment communities, and increase rents.
“Rent control sounds appealing for renters in theory because it limits price increases and saves money in the short term, but it eventually worsens rental affordability because it exacerbates the supply shortage,” says Redfin economist Chen Zhao. “If rent increases are capped below the amount developers would need to make a profit, they have little incentive to build more apartments and homes. The best way to make rentals more affordable is to build more units.”
Now, California already has statewide rent control for many apartments. The Tenant Protection Act limits rent hikes to 5% plus the cost-of-living increase, also known as inflation, every year. The U.S. Department of Housing and Urban Development oversees rent increases for affordable apartment communities that access low-income housing tax credits.
Foreclosure filings decline in much of California and the nation. SHUTTERSTOCK
Foreclosures fall in the third quarter
Despite concerns about the economy and a housing market recession, few homeowners are falling behind on mortgage payments and facing the risk of foreclosure.
California had 10,448 homes enter some form for the foreclosure process during the third quarter, a 4% drop compared to a year ago, according to ATTOM Data. The figure is far from the 60,000-plus foreclosures per quarter during the Great Recession.
It’s also important to note that foreclosure filings cover a wide range of the lengthy foreclosure process, from the basic notice of default (the homeowner has missed a few payments) to a bank-forced auction or sale.
Five of the eight major regions in the state, from the Bay Area to San Diego, had foreclosures decline in the July-September period compared to a year ago. Foreclosures plummeted 30% in Bakersfield, followed by 23% in Sacramento – one of the hardest-hit housing markets at the peak of the recession.
TOUGH TIMES FOR SOME IN SAN JOSE
Only San Jose experienced a significant increase in foreclosures at 9.8% from a year ago. But the city had only 225 homes enter the foreclosure process in the three-month period, such a small figure that any change in either direction skews the stats.
Nationwide, about 87,100 homes entered the foreclosure process during the third quarter, a 2% decline from the second quarter – and a 13% drop from a year ago.
| City | Third-quarter foreclosures | % vs. a year ago |
|---|---|---|
| California | 10,448 | -4.0% |
| Bakersfield | 1,077 | -30.3% |
| Fresno | 288 | -15.8% |
| Los Angeles | 3,122 | +1.5% |
| Riverside | 1,827 | -1.0% |
| Sacramento | 655 | -23.0% |
| San Diego | 594 | -7.8% |
| San Francisco | 1,117 | +4.0% |
| San Jose | 225 | +9.8% |
Source: ATTOM Data
California has the 13th-highest ratio of homes entering foreclosure at one for every 1,381 homes in the state. Illinois, Nevada and Florida have the three highest ratio of homes entering foreclosure, with one for every 900-1,000 homes.
“While we are seeing a decrease in foreclosure starts and repossessions, it’s crucial to remain vigilant, as any economic disruptions or changes in interest rates could shift the current trend,” says ATTOM CEO Rob Barber. “Moving forward, we anticipate foreclosure levels will stay relatively low, but there could be localized increases in areas struggling with affordability or other market pressures.”
Foreclosures are not an issue for a large majority of homeowners in California. Many homeowners today have equity and are more likely to sell their home and enjoy a nifty profit than allow a mortgage lender to foreclose and eliminate the equity in the property. About half of homeowners with a mortgage in California are considered equity rich, with more equity than debt based on the current value of their home.
