An article on Forbes revealed today that even within the Forbes list of America’s 500 Most Expensive Zip Codes, home prices have taken a large hit in the past year. The top 3 zip codes on the list experienced declines of 23%, 23% and 24% respectively. The list as a whole saw a 7% drop on average.
But one of the things that is interesting about the list is that prices were not necessarily being pulled down by foreclosures. Several zip codes (in Atherton, CA, Hastings-on-Hudson, NY and East Hampton, NY) were used as examples of places where prices have dropped significantly without homes being in foreclosure. No homes are in foreclosure in Hastings-on-Hudson, yet prices have dropped 9%. In Atherton, only 10 homes are in foreclosure with prices dropping 23%. Rather, it appears the glut of homes on the market has helped to drive prices down. In East Hampton, at the current rate, it would take 25 years before all the homes currently on the market are sold. This cannot help but have an affect on home prices.
The five most expensive zip codes in America:
1. Alpine, NJ ($4,139,041)
2. Atherton, CA ($3,849,133)
3. New York, NY ($3,521,514)
4. Duarte, CA ($3,444,773)
5. Beverly Hills, CA ($3,367,167)