Well it looks like we're not quite at the top of the list but we're very close and in good company with some well known towns for the well-to-do. I read an article in Yahoo Real Estate and Business Week Online about the most expensive small towns in the U.S. The article is here:
Some positive news for us is that while the median price in the list of Top 50 towns dropped 5.4% in November, the prices in Los Altos Hills rose. That reflects what I've been seeing in Los Altos and Los Altos Hills, prices are moving up and the high-end probably saw the bottom the middle of last year.
A few other local towns making the list include Monte Sereno (18), Loyola (21) NOTE: this isn't a real town but area near Los Altos, West Menlo Park (50). What the last two towns show is that the data was compiled using sources that identify areas that aren't really "towns" in some cases. For example, Atherton isn't on the list and they have a population under 10,000 according to the last census. I'll reach out to Business Week about corrections.