2014 continued the streak of 2013 in Woodside, which was just named by Forbes as the #1 luxury market in the US. The median selling price rose from $2,055,000 in Q1 2013 to $2,525,000 in Q1 2014, a change of 22.9%! The median is also up about 8% over Q4 2013.
Like the rest of the Peninsula, limited inventory in the face of surging demand is driving prices upward, with active listings and closed sales down 25% relative to a year ago.
In contrast, the amount of time, on average to sell has risen by 42% over the last year. This is more due to the quality of the homes for sale than any economic trend, so don’t read too much into that number. Several homes that didn’t sell last year or in 2012 are back on the market and have sold in Q1, so demand is definitely there, and buyers are becoming more willing to compromise on what they want, and buy a house that is “good enough”
Woodside continues to be a tale of two markets with attractive houses in good locations selling quickly for high prices, and homes with challenges lingering on the market for extended periods before selling at a discount. Great examples are the recent sales at 11 Blue Ridge Lane, listed for $3,735,000 and 325 Mountain Home Road at $11,900,000, both are great properties with so-so houses, and both sold in a week.
We saw a number of Facebook employees trolling the Atherton, Portola Valley and Woodside markets in the weeks (and months) prior to their latest round of shares vesting looking for houses to buy, and then a number purchased homes following their shares becoming liquid. A number commented on wanting privacy and being willing to pay a premium for houses that don’t stand out. All of you with single level houses set back behind trees or walls with great privacy, pay attention. If you have views too, this could be your liquidity event!
560 Moore Road
In addition to the two homes I mentioned, 560 Moore Road, listed at $4,995,000 sold in a week after not selling in 2012 when listed at $5,500,000. It’s still the same house and still suffers from noise from 280, but the market has moved enough that the house seemed well priced now. Other buyers who moved too slowly on it are going to be frustrated looking for an alternative.
330 Albion Road
330 Albion Road is another great indicator of the strength of the Woodside market. This was sold off the MLS for $5.5M a year ago. The owners had rented it out while looking at options for building, and decided to see if they could sell it at a profit this year and buy something else. Again, not going on the MLS, it generated several offers on a list price of $6.5M, and sold for over $7M. Yes, over $1.5M in less then 18 months, plus collecting rent. Not bad!
Stay tuned for continued coverage of the Woodside market, and also take a look at my post on cross-shopping in Woodside, Portola Valley and Atherton. Where would you put your money?