Our outlook for 2020 remains bullish on real estate in the area. Based on the strength of the stock market last year, the continuing historic low interest rates, plus the new wealth created by major IPOs last year like Uber, Lyft, and Pinterest, we believe demand will remain high.

If you have been thinking about buying or selling in 2020, it would be our pleasure to represent you. If you have any questions about real estate, please reach out by phone or email.

Portola Valley

In Portola Valley, the 2019 real estate market was strong. A record-high average price was reached at $3,547,592, however the median price declined 9% to $3,042,500. This was due in part to 9 sales for less than $2 million and only 7 sales for more than $5 million. The vast majority of the homes, 57%, sold between $2 million and $4 million.

Lack of inventory resulted in 54 sales last year, the lowest number since 2010 with 53 homes sold. There were 75 new listings in 2019, the lowest number on current records that date back to 2003. In the 10 years preceding 2019, the number of new listings ranged from 80 to 101.

As always, Central Portola Valley had the greatest number of sales, at 20, followed by Ladera with 13. Los Trancos had 7 sales, Portola Valley Ranch had 6 sales, Brookside/Willowbrook had 5 sales, and Santa Maria/Russell had 3 sales. The greatest median price changes were in Central Portola Valley, which increased 13%, Santa Maria/Russell which had a 15% drop, and Portola Valley Ranch, which declined 10%.

Only 10 homes sold for more than list price, a much lower percentage than we are used to in recent years. On average, homes sold for 98% of list price. Homes took longer to sell in 2019 with a median days on market of 36 compared to 11 in 2018. Fourteen homes took less than 2 weeks to sell but 9 homes were on the market for more than 100 days before selling. Already this year, 2 homes have gone into contract, each of which were on the market for more than 87 days.

Woodside

For the year 2019, the median and average price for a home in Woodside declined. Following a record-high year, the median price was down 22% to $2,550,000 and the average price was down 17% to $3,672,149.

In December, sales were surprisingly strong with 7 closed escrows compared to just 3 in the previous year. Prices varied greatly ranging from under $1 million to over $12 million but most sales were in the “more affordable” end of the market. Two of the homes sold for more than list price. Only 1 home has gone into contract this year, which was on the market for 146 days, and 3 homes have been listed since January 1.

Atherton

In Atherton, the 2019 real estate market was strong (per homes sold on the Multiple Listing Service). A record-high average price was reached at $8,735,798, however the median price declined 10% to $6,000,000. The number of sales was the lowest since 2008. Appreciation has been remarkable as the average price has far more than doubled in just 6 years.

In December, there were 3 closed escrows compared to just 1 in the previous year. One home, the most expensive one, sold for more than list price. Already this year, 3 homes have gone into contract, 2 that were on the market for more than 77 days and 2 were over $10 million.

Menlo Park

For the year 2019, the median and average price for a single-family home in Menlo Park declined – the first time since 2009. The median was down 8% and the average was down just 3% to $2,789,232. Appreciation has been remarkable as the median price has doubled in just 8 years.

In December, sales were surprisingly strong with 25 closed escrows compared to just 16 in the previous year. Only 6 of the homes sold for more than list price. There were 2 sales for more than $6.7 million and no sales for less than $1.3 million. Already this year, 2 homes have gone into contract, one that was on the market for 62 days.

Palo Alto

For the year 2019, the median and average price for a single-family home in Palo Alto declined. Since 2009, the median and average price have increased year after year, except for a small decline in 2016. In 2019, the median was down 4%, yet still over $3 million, and the average was down 8% to $3,460,539. Appreciation has been remarkable as the median price has more than doubled in just 8 years.

In December, sales were surprisingly strong with 30 closed escrows compared to just 19 in the previous year. A significant 53% of the homes sold for more than list price. There were 4 sales for more than $5 million and no sales for less than $1.1 million. Already this year, 6 homes have gone into contract, 1 that has already closed and 5 that are pending sale, including one that was on the market for over 100 days.

Los Altos and Los Altos Hills

For the year 2019, the median and average price for a single-family home in Los Altos declined. Since 2009, the median and average price have increased year after year, except for a small decline in 2016. In 2019, the median was down 3%, yet still over $3 million, and the average was down 5% to $3,486,715.

In Los Altos Hills, the median and average price declined for the first time since 2009. The median price fell 13%, yet remained over $4 million, and the average price declined 12% to $4,498,349.

In December in the combined cities, sales were surprisingly strong with 25 closed escrows compared to just 14 in the previous year. There were 7 homes that sold for more than list price, 5 homes that sold for more than $4 million, and no sales for less than $2.3 million. Already this year, 5 homes have gone into contract and are pending sale, including two that were on the market for over 150 days.