According to the National Association of REALTORS®, foreclosures and other “distressed properties” sell at discounts of 20 percent of more. Discounts of that size affect pricing in the broader housing market, too. It’s among the reasons why median home prices are dropping.
Not all markets are affected equally, however. In a recent BusinessWeek analysis, it was shown that one-third of the nation’s 50 most expensive small towns experienced a median price increase between 2010 and 2011.
Topped by Sagaponack, New York — a town of only 582 residents — each of the cities carries a median home price of more than $1,000,000, and a total population of 10,000 or less.
The list is dominated by New York and California, with 22 and 13 entrants, respectively. The rest of the towns are spread throughout the country, including Chilmark, MA (#28), Yarrow Point, WA (#29) and Belle Meade, TN (#48).
The complete Top 10 follows:
- Sagaponack :
$3,406,640, -14.5%Jupiter Island, FL : $2,810,434 -11.3%Kings Point, NY : $2,379,905 +13.5%Los Altos Hills, CA : $2,161,255 -13.6%Water Mill, NY : $2,111,688 -10.0%Belvedere, CA : $2,100,453 + 1.3%Rolling Hills, CA : $2,063,917 +7.3%Hidden Hills, CA : $1,871,182 +0.7%Sands Point, NY : $1,823,677 +9.0%Woodside, CA : $1,792,837 -15.7%
$3,406,640, (-14.5% from 2010)
- Jupiter Island, FL : $2,810,434 (-11.3% from 2010)
- Kings Point, NY : $2,379,905 (+13.5% from 2010)
- Los Altos Hills, CA : $2,161,255 (-13.6% from 2010)
- Water Mill, NY : $2,111,688 (-10.0% from 2010)
- Belvedere, CA : $2,100,453 (+1.3% from 2010)
- Rolling Hills, CA : $2,063,917 (+7.3% from 2010)
- Hidden Hills, CA : $1,871,182 (+0.7% from 2010)
- Sands Point, NY : $1,823,677 (+9.0% from 2010)
- Woodside, CA : $1,792,837 (-15.7% from 2010)
See the complete list at the BusinessWeek website.