REAL ESTATE REVIEW

Slow Start, Second Quarter Rebound

During the first three months of 2009, the reported average sales price of a home in Portola Valley was $1,693,750, slightly up from $1,447,000 the previous quarter. The second quarter saw a substantial increase, with the average sale price rising to $2,313,594. The average reported sale price of Portola Valley property in the first quarter of 2008 was a record $2,733,444. There were just 5 reported sales in Portola Valley during the first quarter of 2009, barely half the number of closed sales than during the same quarter last year. Fortunately, sales rebounded in the second quarter, with 16 reported sales, though this still represents a decline in reported sales by roughly a third, when compared to the same quarter in 2008.

Properties remained on the market longer during the first three months of 2009, taking an average of 92 days to sell. By comparison, the average length of time it took to sell a home during the fourth quarter of 2008 was 24 days. The second quarter of 2009 showed an increase to an average of 115 days on the market. Portola Valley inventory continues to expand: as of the middle of July, there were 35 properties for sale on the Multiple Listing Service with prices ranging from $899,000 to $7,895,000. Of these, 24 are listed below $3 million, 7 are listed between $3 and $5 million, and 4 are listed above $5 million.*