Home Prices Fall Even in Wealthy Zip Codes

Posted by: Chris Palmeri on February 5, 2009

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New numbers provided us by online real estate agent ZipRealty.com shows that the housing slump is begining to pinch prices even in the nation’s wealthiest zip codes.

In Atherton, in Northern California, prices fell 2% to $4.1 million last year. In Newport Beach, Calif. prices fell 10% to $2.5 million. Further south, in Rancho Sante Fe, homes sold at an average of 90% of their asking price. No more price wars there.

One exception to this slide, the Highland Park neighborhood in Dallas. Prices there were up 10% to $2.2 million. Maybe that’s just because the Bushes moved in.

Reader Comments

Jose Cuervo

February 5, 2009 6:41 PM

Highland Park has a possible REAL ESTATE BUBBLE.

Dave Blockhus

February 9, 2009 2:39 PM

Chris,

A little more information on what type of prices (median vs average) and size of sample pool (are we talking 100 home sales or a thousand) would give your numbers more power.

Something like "Atherton had only 63 sales in 2008, that's 17 fewer sales then 2007 (21% drop in volume). In addition, the average sales price of these 63 homes was $4,045,000, a 2.7 percent drop from 2007 figures."

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About

BusinessWeek editors Chris Palmeri, Prashant Gopal and Peter Coy chronicle the highs and lows of the housing and mortgage markets on their Hot Property blog. In print and online, the Hot Property team first wrote about the potential downside of lenders pushing riskier, "option ARM" mortgages and the rise in mortgage fraud back in 2005—well ahead of many other media outlets. In 2008, Hot Property bloggers finished #1 in a ranking of the world's top 100 "most powerful property people" by the British real estate website Global edge. Hot Property was named among the 25 most influential real estate blogs of 2007 by Inman News.

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