It was a mixed market in Portola Valley in 2022 with a record-breaking first half of the year and then a significant shift in the second half (although still at a higher average price than 2021). For the year, the number of sales was down a dramatic 46% compared to the all-time high set in 2021. This drop in sales was a common occurrence in all cities on the Peninsula. Also, for the year, the average and median prices in Portola Valley reached significant new highs. The average price exceeded $5 million for the first time with a 32% increase since 2021, and the median price exceeded $4 million for the first time with a 20% increase.
In the first half of the year, the average price was its highest ever at $6,544,967, attributed to 3 sales between $10 million and $25 million. In the second half, the average price declined to $4,095,733, which was still slightly higher than the average price in 2021. The number of sales was split evenly between the two halves. There were 14 sales for $7 million or more in the year and no sales for less than $2.3 million.
As always, Central Portola Valley had the greatest number of sales, at 27, followed by Ladera with 16 sales. Portola Valley Ranch had 9 sales, Los Trancos had 4 sales, Brookside/Willowbrook had 3 sales, and Santa Maria/Russell had no sales.
The only area to show a decline in average price was Los Trancos; all others reached record high prices with increases by as much as 37% for the year. Of the 59 homes sold, 25, or 42%, sold for more than list price. This included 11 sales that were sold in the second half when the market had started to shift.
Homes sold faster than ever, per records dating back to 2006, with a median days on market of just 10. The first half of the year median was 9 days on market and for the second half of the year it was 12 days.
There are only 6 homes currently for sale (and another 6 that are listed as “off-market”). There have been no new active listings for over 3 months making this an excellent time for Portola Valley sellers.
Our outlook for 2023 remains bullish on real estate in Portola Valley due to the demand for the lifestyle Portola Valley offers – which most of us have known about for years. We do, however, expect a more level market reflective of pre-pandemic conditions and not the pace of the last two years. While interest rates are up and the economy is fluctuating, real estate buying and selling is more often a result of life changes (family size, divorce, death, job change, etc.) and that will continue in 2023.
We have sold more homes in Portola Valley than anyone else and we are prepared to manage your real estate needs for any lifestyle change you have in 2023 and beyond. It would be our pleasure to represent you. If you have any questions about Portola Valley real estate, or the surrounding Peninsula communities, please reach out by phone or email.