The Hillsborough real estate market surges forward with unprecedented strength at all price points. The 2021 market experienced more volume (165 sales on MLS for 2021 vs. 139 in 2020), higher price per sq. ft. (2021 average of $1,334 vs. 2020 $1,213), and dramatically higher average and median sales prices for the year. Price per sq. ft. was up 10% from 2020, and the median sales price shot up by 15% to $5,312,500. The market dynamics were influenced by a trickle-up phenomenon, with many Hillsborough homeowners "moving up" within Town, putting pressure on the upper price brackets. In November alone, four eight-figure listings went into escrow, including the De Guigne/Musk Estate which has now closed at $30,000,000 as the #2 Hillsborough sale of all time. For 2020, there were just 5 total sales above $10M reported to MLS, compared to 2021, which blossomed to a whopping 17 sales over ten million!* Truly a break-out year that defined a new market segment for Hillsborough, and finally, more akin to neighboring luxury market of Atherton.
At the entry level of $3M-$4M, we also experienced intense multiple bidding, as exemplified by my listing at 1207 Marlborough that was listed at $3,850,000 and closed for $4,810,000 with five offers received with five days on the market. The Mid Range price point of $5M - $8M was equally robust and popular based on low supply, particularly in Lower North and Lower South. Examples include the fast and strong sales at 1710 Floribunda, 40 Genevra, 35 Laureldale, 209 Bridge, and 950 Baileyana. In many cases, we are witnessing an abundance of Peninsula "organic buyers" such as those originating from San Mateo, Burlingame, Hillsborough, and trading up into Town. Even further outlying cities such as Belmont and Foster City have added to this sensation, as those markets are themselves maturing toward $3M norms.
On a personal note, I am thankful for the trust of my client base that enabled me to close 2 of the Top 3 sales in Lower North Hillsborough for 2021, as well as making me one of only two agents to close an eight-figure Hillsborough sale in four consecutive years (2018, 2019, 2020, 2021).
Moving on to 2022, I predict the Hillsborough market will reach, or strongly approach, a $1,500 average price per sq. ft. for the Town. Lower Hillsborough will over-achieve with limited inventory and demand from the organic buyer demographic (those from Hillsborough, Burlingame, San Mateo); new luxury markets will be defined in areas that were previously "emerging," such as Lower Lakeview and pockets of Carolands; and as mentioned prior, the ultra high-end from $10M-$20M will command the stage, with the potential to post twenty $10M+ sales in one year for the first time ever. Going on my 21st year in Hillsborough real estate, I am proud to offer my clients truly differentiated market knowledge. I look forward to elevating your success in 2022. 650-455-3735 firstname.lastname@example.org
*Only those sales reported to MLS. Additional off-market sales have definitely transacted as well.