In a transaction that highlights the extreme nature of the Bay Area real estate market, a modest 1930s home in West Atherton recently commanded a jaw-dropping $10 million. However, it’s the lot that the house sits on that gathered frenzied attention, prompting 14 offers and a sale price of nearly $9.5 million – a figure significantly higher than the initial listing price of just under $8 million. The property at 123 Stockbridge Ave. was described by listing agent Gina Haggarty of Compass as having “no significant value” to it, with the true worth being the 1.157-acre plot of land itself, the New York Post reported.
Atherton has carved out a reputation for luxury and exclusivity, boasting residents like Steph Curry and high-profile tech investors. In a market where the properties themselves routinely take a backseat to the land they're developed on, Atherton's ZIP code ranks as the second most expensive in the nation. "Really, it's land value," Haggarty told The SF Standard, emphasizing the irrelevance of the actual home in the sale. The winning bid was placed by an undisclosed buyer who took over the property, which, according to public records, faced the impending threat of foreclosure, still owing nearly $5 million on a 2017 loan.
Ken DeLeon, the founder of DeLeon Realty and an expert in Atherton properties, associates the recent uptick in teardown bids with the burgeoning tech industry and investor confidence in the ongoing artificial intelligence (AI) boom. This renewed interest is helping to shake off a recent dip in construction activities, which was caused by economic uncertainties and rising construction costs. DeLeon, commenting on the market dynamics, pointed out, "The lack of supply of good Atherton lots, coupled with increased demand due to AI liquidity, will drive the luxury market to new heights next year." The exceptional interest in this particular lot has been linked to a broader resurgence in ultra-luxe property sales, propelled by these novel economic drivers, according to The SF Standard.
While the sale was surprising in its speed, moving from listing to contract in a mere 15 days, Haggarty foresees a continuation of such brisk and confident acquisitions into the coming year. Although 2025 exhibited a hit-or-miss pattern in the luxury real estate market, experts predict that 2026 will shatter previous records. Buyers, buoyed by the financial might that the AI sector provides, appear unfazed by the prospect of spending millions on properties that will take years to develop. With construction costs for custom homes running as high as $2,600 per square foot, the investment in an Atherton dream home easily totals in the tens of millions, the New York Post indicates.
