Your Real Estate Expert for Berkeley and Beyond
“Marilyn is exceptional. Her knowledge base, enthusiasm for her job, professional ethics, organization, sensitivity to our aesthetic requirements, loyalty and gentle perseverance set her apart.”
-- Bill and Carol Seidel
Marilyn Garcia, PhD
Broker Associate, Realtor®
DRE# 02014153
District Homes
1758 Solano Ave.
Berkeley, CA 94707
Direct:
(510) 390-5406
THE OUTLOOK: North Berkeley & the Berkeley Hills, Q4 and 2025 (annual) results
THE OUTLOOK: Berkeley Real Estate Market Update, Q4 and full-year 2025 results The real estate market in Berkeley held up well in 2025, mostly because Berkeley continues to be in great demand, but also thanks to a slight downward trend in interest rates. Rates started 2025 at around 7%, and ended the year in the low 6% range. This shift helped bring some renewed energy into the market, particularly in the second half of the year. --- North Berkeley For 2025, the median sold price in North Berkeley was $1,600,000, down 9% from 2024. However, that drop reflects a change [...]
NEW LOAN LIMITS
NEW LOAN LIMITS Good news for homebuyers and sellers in 2026: the limit for conforming loans in high-cost areas (including much of the Bay Area) has increased once again, to $1,149,825. Why does this matter? Conforming loans, which meet the guidelines for purchase by Fannie Mae and Freddie Mac, typically come with lower interest rates and require smaller down payments than jumbo loans. With the new, higher limit, more Berkeley buyers can now qualify for conforming loans, even for homes priced well above the loan limit once you factor in the down payment. This expands financing options and helps reduce [...]
THE OUTLOOK: North Berkeley & the Berkeley Hills, Summer (Q3) 2025 results
THE OUTLOOK: North Berkeley & the Berkeley Hills, with results from Summer (Q3) 2025. How is the Real Estate Market Doing? The current economic and political climates, combined with interest rates in the mid-6% range (even after the Fed’s September rate cut), continue to weigh on buyer confidence. The good news, though, is that Berkeley real estate remains strong—and even gained ground in the third quarter. Both North Berkeley and the Berkeley hills posted solid results, reflecting continued demand despite broader uncertainty. *** North Berkeley In North Berkeley, the median sold price in Q3 2025 was $1,575,000—up 7% from last [...]
Street Names: SHATTUCK AVENUE
Street Names: SHATTUCK AVENUE Do you ever wonder where the names of Berkeley streets come from? Shattuck Avenue and Kittredge Street were both named after Francis Kittredge Shattuck. Shattuck was an early resident and a prominent force in the growth of what became the City of Berkeley. He was born in New York in 1824 and moved to California with his friend and brother-in-law George Blake when they heard that gold was discovered here. Shattuck and Blake each acquired 160-acre parcels in what is now central Berkeley. Francis Shattuck had various political roles, and was mayor of Oakland from 1859-1860. [...]
REAL ESTATE ANSWERS: Is Berkeley checking how we sort our waste and recycling?
Is Berkeley checking how we sort our waste and recycling? Yes, the City has been checking a subset of our curbside refuse and recycling bins for correct sorting lately. If they find items in the wrong bin, they leave a note with tips to help you sort correctly. Because I spend a fair amount of time trying to figure out which bin various items go in (or which Ridwell bag to use), I periodically go online and check the sorting rules, and thought I’d share some interesting and clarifying tips I found. The question that has come up most often [...]
THE OUTLOOK: North Berkeley & the Berkeley Hills, Spring (Q2) 2025 results
THE OUTLOOK: North Berkeley & the Berkeley Hills, with results from Spring (Q2) 2025. Spring is traditionally the busiest season in the Berkeley real estate calendar, and 2025 was no exception. Across both North Berkeley and the Berkeley Hills, the second quarter brought a flurry of activity, supported by sustained strong buyer demand. Even as interest rates remained elevated and economic signals remained mixed, the local market showed resilience. Price trends this spring were driven in large part by the mix of properties sold. North Berkeley saw more condo sales, and the Hills saw more higher-end sales; these shifts shaped [...]
REAL ESTATE ANSWERS: What changes are coming to Berkeley’s BESO program, and how will they affect home sellers?
What changes are coming to Berkeley’s BESO program, and how will they affect home sellers? Coming soon to a real estate sale near you: changes to Berkeley’s Building Emissions Saving Ordinance (BESO) that will significantly increase the requirements when a single-family home or detached condo is sold. The purpose of the ordinance (from the code itself) is “to reduce energy use, water consumption, and greenhouse gas emissions in existing buildings.” Currently, BESO requires a seller to complete an Energy Report identifying energy and water efficiency opportunities, which must be filed with the City. The total cost is typically under $500. [...]
Movies in the Park
Movies in the Park Looking for something to do on a Friday night coming up? How about seeing a movie in a Berkeley park? The City of Berkeley’s free evening movie series runs through mid-September. If you’re going, the City suggests arriving at least 30 minutes before showtime, and recommends not driving there if possible, as street parking will be limited. Plan to bring something to sit on (low beach chairs only—so the people behind you can see—or a blanket, sleeping bag, etc.), a flashlight or headlamp, and weather-appropriate layers in case it gets chilly. I would definitely bring some [...]
THE OUTLOOK: North Berkeley & the Berkeley Hills, Q1 2025 results
THE OUTLOOK: North Berkeley & the Berkeley Hills, with results from Q1 2025. As I write this in early April, the newly implemented Trump tariffs have introduced a big wave of uncertainty into the economy. Uncertainty and tariffs generally aren’t good for the stock market—but paradoxically, bad news for stocks can mean good news for interest rates. In uncertain times, investors often move money into bonds, which tends to push mortgage rates lower. And lower rates are good for the housing market. Even in periods of economic instability, a home remains a solid long-term investment: you can live in it, [...]
REAL ESTATE ANSWERS: What is wire fraud in real estate, and is it a big deal?
What is wire fraud in real estate, and is it a big deal? There are countless scams out there designed to steal your money, and one major example is wire fraud in real estate. It happens when scammers learn that a real estate transaction is in progress and send fake emails that look legitimate — often posing as the buyer’s agent, escrow officer, or lender. These fake emails typically tell the buyer that it’s time to send closing funds to escrow, and they include wiring instructions that, if followed, send the buyer’s money straight into the scammer’s account. And yes [...]
PARKING PERMITS
Parking Permits If you live in a Berkeley neighborhood with two-hour street parking limits and have a residential parking permit that exempts you from the time limit near your home, it’s time to start thinking about renewal. You’ll need to have your new permit in place by July 1st, and if you renew online, remember that the City of Berkeley says processing may take five to seven days. You also won’t be able to renew if you have any unpaid parking tickets, so make sure to clear those first. Permits these days are digital and tied to your license plate [...]
THE OUTLOOK: North Berkeley & the Berkeley Hills, 2024 wrap-up and results from Q4
THE OUTLOOK: North Berkeley & the Berkeley Hills, 2024 wrap-up and results from Q4 Looking back on the Berkeley real estate market for 2024, mortgage rates continued to be the big story. The Federal Reserve cut its federal funds rate target three times in the last portion of 2024, by a total of 1%. Mortgage rates reached their lowest level of the year in September, in the low 6% range, right around the time of the first Fed rate cut. Since then, though, despite two more Fed cuts, mortgage rates have climbed back up to almost 7%. What happened? Mortgage [...]
THE BERKELEY PUBLIC SCHOOLS FUND
The Berkeley Public Schools Fund There are many great reasons to support public schools. Public schools ensure all children, regardless of background, have access to quality education and future opportunities. They teach critical thinking and help the next generation of voters analyze information, identify misinformation, and make informed decisions, supporting the functioning of our society. Public schools also foster community vibrancy. They bring together students from diverse backgrounds, promoting inclusion and understanding. Schools serve as gathering places where people connect, hosting cultural events, art programs, and performances. They provide essential services, like meal programs, counseling, and extracurricular activities, contributing to [...]
REAL ESTATE ANSWERS: What causes window condensation, and what can you do about it?
What causes window condensation, and what can you do about it? In the winter, the difference between outdoor and indoor temperatures often causes condensation to form on windows. This moisture can drip down to the window frame or sill, leading to surface deterioration and creating a favorable environment for mold to grow. Mold growth can also go unnoticed behind blinds and curtains, making it important to address condensation issues quickly. When warm, moist air accumulates inside your home, condensation is more of an issue. Kitchens and bathrooms are often the biggest sources of moisture, which is why good ventilation in [...]
THE OUTLOOK: North Berkeley & the Berkeley Hills, Q3 2024 wrap-up
THE OUTLOOK: North Berkeley & the Berkeley Hills, Q3 2024 wrap-up The most interesting news in real estate lately has not been about the local market, but rather about interest rates and Federal Reserve policy. Over the summer, the expectation was that we were reaching the point where the Fed would start lowering interest rates. After 11 increases in the Fed’s interest rate target from March 2022 to July 2023, and more than a year at the July 2023 peak, the Fed reduced its target rate on September 18th. The cut was widely expected, and interest rates on home loans [...]
VOTER INFORMATION, BERKELEY AND ALAMEDA COUNTY
VOTER INFORMATION, BERKELEY AND ALAMEDA COUNTY Election Day, Tuesday, November 5th, is rapidly approaching! Voting is so important, and Alameda County has made the process incredibly convenient. You need to register to vote, but if you registered in the past, you are all set unless your address, name, or political party has changed. You can check your registration status at voterstatus.sos.ca.gov/. You can vote by returning the ballot you should receive in the mail (be sure to sign the envelope!), or you can vote in person. To return the mailed ballot, drop it in a mailbox (no postage needed); it [...]
REAL ESTATE ANSWERS: How has the practice of real estate changed recently?
How has the practice of real estate changed recently? I mentioned in a previous newsletter that there were changes coming in the real estate world, and they’ve arrived. As a result of a settlement by the National Association of Realtors®, there are a couple key things we are doing differently these days. The first is that sellers are no longer committing to pay the buyer’s agent in advance, as part of the listing agreement, and there is no commission offer to a buyer’s agent in the MLS. In the newly revised forms, reflecting the new procedures, the listing agreement only [...]
THE OUTLOOK: North Berkeley & the Berkeley Hills, Q2 2024 wrap-up
THE OUTLOOK: North Berkeley & the Berkeley Hills, Q2 2024 wrap-up It has been a wild real estate market out there this spring. Buyers were very picky, and many were looking for properties that were close to shops, campus and transportation. Buyers in this category seem to have adjusted expectations and accepted that higher interest rates are the new normal, and they are back in the market. As a result, we saw some big bidding wars for desirable homes, and some high price results. Since much of the area I’m calling “North Berkeley” is close to shops and transportation, it [...]
RANDOM REFUSE & RECYCLING BITS
My husband and I were recently trying to figure out if a white takeout food container could go into our green Berkeley compost collection bin. (I think the answer is no, because even though it is mostly paper, it has a plastic coating inside to make it hold liquid.) In trying to find the answer to our question, I came across a couple bits of potentially useful information I thought I would share. Did you know that you can ask the City to come out and clean your trash and/or compost bin? You just call the service center at 510-981-7270 [...]
THE OUTLOOK: North Berkeley & the Berkeley Hills, Q1 2024 wrap-up
THE OUTLOOK: North Berkeley & the Berkeley Hills, Q1 2024 wrap-up How is the market doing so far this year? It’s been mixed. Higher interest rates are definitely having an effect. Some properties are selling quickly with multiple offers, and others are not. In general, properties that are well-presented (with good preparation, good staging, and good marketing), and that are strategically priced compared to similar properties, are selling well. There are a good number of first-time buyers in the market, who typically shop for smaller/less expensive homes. There are also wealthy or high-income buyers, who can afford a purchase even [...]
Berkeley is the (among the) best! / Going Green
Best Cities Niche.com recently released its 2024 ranking for the “Best Cities to Live in America,” and Berkeley was #11! Berkeley was rated highly in the categories Public Schools, Good for Families, Nightlife, Diversity, Weather, Health & Fitness, Commute, and Outdoor Activities. Berkeley was bested in this ranking only by Irvine (ranked #6 overall) among California cities. For full details, see niche.com/places-to-live/search/best-cities/. Going Green I am always looking to expand my knowledge of anything related to real estate, and I recently finished the coursework to be a designated “Green” Realtor®. The coursework covered a broad range of topics, from ways [...]
THE OUTLOOK: North Berkeley & the Berkeley Hills, Q4 and full-year 2023 results
THE OUTLOOK: North Berkeley & the Berkeley Hills, Q4 and full-year 2023 results 2023 was an interesting year in Berkeley real estate, where the driving factor was interest rates. Rates climbed to almost 8% during 2023, from around 3% at the start of 2022, with two main effects. On the demand side, higher interest rates reduced demand by increasing costs for any buyer needing to get a loan. To give you a sense of the impact, a loan of $1M at an interest rate of 3% costs $4216/month; at 8%, the monthly payment on that same loan is $3122 more [...]
REAL ESTATE ANSWERS: What counts as a bedroom in real estate, and do more bedrooms add value?
What counts as a bedroom in real estate, and do more bedrooms add value? A bedroom in general is just a room where people sleep. For a room to count as a bedroom for real estate purposes, there are several requirements: (1) FLOOR SIZE. According to the standards used by appraisers, a habitable room must have a floor of at least 70 square feet in area and be at least 7 feet in any direction. So a 7’x10’ room is okay, but a 6’x12’ space, even though it’s 72 square feet, wouldn’t be counted as a room (or a bedroom) [...]
Color of the Year
Color of the Year Design is an important aspect of my job, so I am always interested in color trends. These days, various companies, especially paint companies, annually announce one or more color(s) of the year. You can see a selection of these for 2024 here. (There are lots of interesting blues among them.) The most impactful color of the year is chosen by the Pantone Color Institute, which forecasts global color trends. They have been designating a “color of the year” since 1999, and they were the first to do it. Pantone’s color of 2024 is Peach Fuzz, which [...]
THE OUTLOOK: North Berkeley & the Berkeley Hills, Q3 2023 results
THE OUTLOOK: North Berkeley & the Berkeley Hills, Q3 2023 results The main feature of the Berkeley real estate market in the third quarter of 2023 was the combination of rising interest rates and low inventory of homes for sale. Interest rates on home loans have climbed to the high 7% range, reaching almost 8% as I write this. This is more than double what rates were at the beginning of 2022, so it’s not surprising that we’ve seen a reduction in demand for properties compared to last year. At the same time though, there has been a decline in [...]
REAL ESTATE ANSWERS: How do actions by “the Fed” affect interest rates on home loans?
How do actions by “the Fed” affect interest rates on home loans? The Federal Reserve System (“the Fed”) uses monetary policy to keep the U.S. inflation rate low, and keep the economy operating at full employment. These are competing goals, so their work is a major balancing act. The Fed’s primary policy tool is changes in the federal funds rate, which is the rate at which commercial banks loan extra reserve funds overnight to each other (so it’s a very short-term interest rate). The Fed raises rates to combat inflation, and reduces them if they are trying to fight high [...]
Mobile Driver’s License
Mobile Driver’s License Did you know that the California DMV has a mobile Driver’s License (mDL) pilot program running now, open to up to 1.5 million users? If you’re interested in giving it a try, start by downloading the free app called “CA DMV Wallet” from the Apple App Store, or from Google Play if you have an Android device, and then follow the straightforward instructions there. You create (or log into) your DMV account, enter some basic information, scan your driver’s license, and then “scan” your face (like you’re taking a selfie). Next you submit your request, and wait [...]
THE OUTLOOK: North Berkeley & the Berkeley Hills, Q2 2023 results
Looking at the market data for the second quarter of 2023, the theme seems to be “good news, bad news.” Let’s start with the bad. If you compare price results for the second quarter of this year to the second quarter of 2022, prices are, not surprisingly, down. The median sold price in the hills was $1,725,000 for the second quarter this year, which is down 12% from last year. The average sold price per square foot, $904, is 13% lower than it was for the same period last year. In North Berkeley, the median sold price in the second [...]
REAL ESTATE ANSWERS: What’s going on in the home insurance market, and how does it affect current homeowners?
What’s going on in the home insurance market, and how does it affect current homeowners? In late May, State Farm, which is the largest issuer of homeowners’ policies in California, announced that it would not sell any new home insurance policies in California. In addition, Farmer's Insurance just announced that they will limit the number of new policies they sell here. Allstate also stopped issuing new policies in California last fall, so this is a significant trend. Why are these big insurers pulling away from California at this time? Major wildfires in recent years have resulted in surges in claims, [...]
N11 Refresher
N11 Refresher Here’s a brief refresher on N11 quick-access phone numbers (where N is a number between 2 and 9) . 911 of course connects to a dispatcher for emergency services. Did you know, though, that if you call 911 on a cell phone, the call often ends up in a regional center, and then needs to be forwarded to more local help? If the call needs to be re-routed, this adds time to the process. This is not ideal in an emergency, so it’s a good idea to have your local, direct-access emergency number stored in your cell phone, [...]
THE OUTLOOK: North Berkeley & the Berkeley Hills, Q1 2023 results
A big question on many people’s minds lately is “how is the real estate market doing?” One important answer to that is that inventory has been really low so far this year. There were only 32 listings on the market in the Berkeley hills during the first quarter (Q1) of 2023, which is less than half the number from the same period last year. With so little inventory, there also weren’t many sales. The 15 sales in Q1 this year were also less than half as many as in the first quarter of 2022. In North Berkeley, there were only [...]
More Recycling
More Recycling I started using a new paid recycling service called Ridwell in January, and I have to say, I have been loving it. Ridwell charges $14 to $18 per month (depending on the number of months you commit to), and comes to your house every two weeks to pick up items that our regular City recycling pickups don’t collect. They pick up plastic film (including most bubble wrap, grocery and newspaper bags, and the outer packaging on many items), batteries, light bulbs, and threads (clothing and other fabrics) every time, plus they have one additional special category on each [...]
REAL ESTATE ANSWERS: What is (or was!) the California “Dream For All” program?
What is (or was!) the California “Dream For All” program? There have been many programs over the years aimed at helping first-time buyers get into the expensive California housing market, but they have mostly been so restrictive that few people were able to use them. The less-restrictive “Dream For All” program from the California Housing Finance Agency is targeted to low and moderate income first-time buyers. It provides funds for down payment and closing costs through a shared appreciation loan of up to 20% of the purchase price. Here’s an example of how it can work. A qualifying buyer uses [...]
THE OUTLOOK: North Berkeley & the Berkeley Hills, Q4 and Annual 2022 results
Last year was the craziest roller coaster I’ve ever seen in our local market. We started 2022 with an intense surge in buyer activity, but that surge was reversed by the summer and through the end of the year, as buyers adjusted to higher interest rates, concerns about the economy, and declines in the stock market. *** NORTH BERKELEY: Looking at 2022 as a whole, the median sold price in North Berkeley was $1,650,000, which is unchanged from the previous year. Average sold price per square foot, at $1046, was up 7% compared to 2021. Properties in North Berkeley sold [...]
REAL ESTATE ANSWERS: What design trends are you seeing now for kitchens?
What design trends are you seeing now for kitchens? Here are ten trends for kitchen design I have been seeing in publications and in our local market: Stark all-white kitchens are becoming less popular. People are looking for more warmth, which can come from materials or color. Unpainted wood cabinetry is increasingly popular; the grain and color of the wood add warmth and a natural element to the overall design. If cabinets are painted, we’re seeing less gray and less white, and more shades of blue, green, saffron, and ivory. The use of open shelving for storage is trending downward, [...]
Changes Afoot!
Changes Afoot! My 20-year anniversary in real estate has inspired me to look over my work systems and find ways to improve going forward. One area that I have re-vamped is the way I collect and analyze local market data. My goal has been to reformat my ongoing database to make it easier to create charts and graphs. I’m also going to start saving data for Berkeley as a whole, in addition to data for North Berkeley and the Berkeley hills. Another change: In the past, I have looked at real estate “seasons” that correspond with the level of activity [...]
THE OUTLOOK: North Berkeley & the Berkeley Hills, Summer 2022 results
The real estate market over the summer was noticeably more subdued than in the first half of the year. Buyers were in an absolute frenzy in the spring, anxious to get into the market before interest rates increased, and as a result, prices went up sharply. Over the summer, the spring spike in prices vanished, as buyers became much more cautious. A number of factors together explain why the summer market slowed. The stock market went down (affecting buyers’ down payment funds), and interest rates went up (affecting affordability). Some buyers could no longer afford the type of home they [...]
It’s been 20 years!
It does not feel like it has been this long, but this October marks twenty years that I have been a full-time realtor in Berkeley. I started in real estate with my salesperson’s license in October 2002, and then completed the additional certifications to get my broker’s license in 2006. It was a hard decision to change careers from academia to real estate (I was previously an economics professor at the University of San Francisco), but real estate is my passion, and I haven’t regretted it. I get to apply my economics background in things like analyzing market conditions, thinking [...]
REAL ESTATE ANSWERS: How has the negotiating environment changed as the market has shifted?
How has the negotiating environment changed as the market has shifted? When the real estate market is at its strongest, there is not a vast amount of negotiation between buyers and sellers. Buyers make strong offers in competition, often waiving the inspection contingency, and many sellers choose to accept the best offer, rather than negotiate and risk de-stabilizing the transaction. When the market is more balanced, there are fewer offers on properties, and buyers may not feel that they have to make their best offer at the start. An accepted offer might also have an inspection contingency, so there may [...]
THE OUTLOOK: North Berkeley & the Berkeley Hills, Spring 2022 results
There has been a lot going on in the real estate market since my last newsletter, when I wrote that competition between buyers was looking especially intense. The prospect of increasing interest rates always motivates buyers to find something before rates go up, so they bid extra hard for available properties. As a result, we saw more incredible sale prices during the spring, and the market reached a new peak. **** NORTH BERKELEY There were 39 properties on the market in North Berkeley over the spring season (March through the end of May), and 27 properties sold. Of these, all [...]
REAL ESTATE ANSWERS: How much difference do higher interest rates make for home sales in our area?
How much difference do higher interest rates make for home sales in our area? Over the spring, the Federal Reserve announced a plan for multiple interest rate hikes this year to try to get inflation under control, and we’ve seen three rate increases already this year. As I write this, interest rates on home loans are approaching 6%, up from about 3% at the start of the year. Interest rates are at their highest level in 10 years, and there may be additional increases to come. Increasing rates make a lot of difference in the purchasing power of individual buyers. [...]
Bulky Waste and an E-Waste Resource
Did you know that, as a Berkeley homeowner, you can schedule one free bulky waste pick-up per calendar year? Just call (510) 981-7270 to schedule for an upcoming Wednesday. They’ll pick up a maximum of 3 cubic yards, which they say is the equivalent of about 20 large trash bags. Everything they pick up goes to the landfill, so be sure to separate out recyclables, green waste, and consider Urban Ore for items that can be re-used. Some things are not eligible for the bulky waste pick up. Included on the “not OK” list are things like hazardous waste items, [...]
THE OUTLOOK: North Berkeley & the Berkeley Hills, Annual 2021 & Winter 2021-22 results
It’s time as usual to look at the previous year’s results for our local real estate market, and also talk about the results for the winter season just ended. 2021 started off with a bang. A big upswing in buyer interest led to major competition between buyers, which led to big price increases. The craziness moderated somewhat later in the year as interest rates started increasing and more homes came on the market for sale, but values stayed at the new higher levels. In 2021, there were more properties on the market in both North Berkeley (127 active listings) and [...]
Variations in Sold Price per Square Foot
If you are a regular reader of this newsletter, you have many times encountered the notion that, everything else being equal, the amount a property sells for per square foot of living space tends to be lower for large homes, and higher for small homes. To illustrate this point, I grouped the detached homes sold in North Berkeley and the Berkeley hills* over the course of 2021 by size category, and found the average sold price per square foot for each category. The results are above. As you can see, the pattern holds as a general rule: the larger the [...]
REAL ESTATE ANSWERS: Why are most sellers in our area no longer accepting “love letters” from buyers?
Why are most sellers in our area no longer accepting “love letters” from buyers? In our market, where buying a home is a super-competitive process, it used to be the case that buyers would include a “love letter” with their offer in hopes that it would influence the seller in their favor. The letter would tell the seller about the buyers, their qualifications, and why this property would be the perfect home for them. It also often included a photo of the buyers. The idea was that, because many (even most) sellers have some emotional attachment to the property they’re [...]
THE OUTLOOK: North Berkeley & Berkeley Hills, Fall 2021 results
I mentioned in the last newsletter that the market seemed to be cooling off a bit from the spring frenzy, and that was true through most of the fall season. That has changed recently (the market has been crazy hot again in December!), but we won’t have data on that until next year, when the currently pending sales have closed escrow. Over the fall, inventory was relatively high, and it was the competition between properties that made the market a little cooler than earlier in the year. Prices are still sky-high though. Sales over $2 million are now not uncommon [...]
REAL ESTATE ANSWERS: Should I be careful not to over-disclose when I’m selling my home?
Should I be careful not to over-disclose when I’m selling my home? Completing seller disclosure forms in California can be a daunting task. A seller is legally obligated to disclose all known material information about the property to the buyer, and can be sued for hiding defects or problems. A material fact is any piece of information that would affect the buyer’s decision to purchase the property. To meet this obligation, sellers complete a series of detailed questionnaires about the current condition of the property, ongoing maintenance, past repairs and upgrades, and a whole array of other topics. Some of [...]
SEWER LATERALS AND DRAINAGE
Sewer Laterals and Drainage We’ve had a number of office discussions about water-related issues since the first “atmospheric river” passed our way, and I heard something about sewer laterals that I wanted to pass along. A sewer lateral is the underground pipe that takes wastewater from your home to the city sewer line. You probably know that when you sell a home in Berkeley, the sewer lateral needs to be brought up to current standards, either before or soon after a sale, unless there is a compliance certificate already on file. The reason this is a requirement is not to [...]
THE OUTLOOK: North Berkeley & Berkeley Hills, Summer 2021 wrap-up
I have been getting lots of questions lately about the state of the market, with people mentioning news articles that cite slowing. Our local market was not quite as crazy over the summer as it was over the spring, and that seems to be continuing into the fall. However, the spring was sooooooo crazy, that even with a little cooling, the market is still very solid. **** BERKELEY HILLS There were 96 active listings in the hills for the summer 2021 season (June through August), and 66 properties closed escrow. These numbers are up from the spring, which is not [...]
RESOURCEFUL
RESOURCEFUL I try to recycle as much as possible, but I pretty frequently find myself staring at something trying to figure out what to do with it. I recently downloaded the “Resourceful” app to my phone, and I really like it! [If a phone app is not your thing, you can get the same information online at ResourcefulApp.com.] On Resourceful, you can look at various products, and see recycling information that is specific to Berkeley, and also ideas for more sustainable alternatives. Resourceful also has a useful general guide to recycling in Berkeley. Here are a few tidbits about [...]
REAL ESTATE ANSWERS: What kinds of projects can add lasting value to my home?
What kinds of projects can add lasting value to my home? Suppose you want to do some work on your home, and you want to choose a project that will add value, not just today, but into the future when you might sell your property. We all know that kitchens and baths sell houses, so remodeling either of those is an obvious possibility. However, if you have a long time horizon, there's a problem with that choice: remodeling is very style-dependent. If you remodel your kitchen now, but don’t sell your home for 15-20 years, you’re not going to get [...]
THE OUTLOOK: North Berkeley & Berkeley Hills, Spring 2021 wrap-up
I am definitely a data-lover (I know that will not come as a surprise!), but I have been especially looking forward to analyzing the data for Spring 2021. The Berkeley market has been super hot since the start of the year, and the spring results are where that should show up. **** BERKELEY HILLS Over the spring season, there were 75 active listings in the hills, and 59 properties sold. These numbers are both higher than for Spring 2020 (not surprisingly, given that was the start of the pandemic shut-downs), and they’re also higher than in Spring 2019. Properties were [...]
A GREAT CAUSE
A GREAT CAUSE Since as far back as I can remember, I have always loved libraries. When I was growing up, I loved the independence of wandering the aisles and choosing my own reading adventures. As a teen, the library was a safe and welcoming place to study and to meet up with friends. In college and graduate school, libraries were places to find answers, and spots of quiet serenity where I could get serious work done. As an adult, I borrow books all the time (although now I do it electronically, which I know is a controversial choice for [...]
REAL ESTATE ANSWERS: What is the right pricing strategy for my home?
What is the right pricing strategy for my home? In Berkeley and in the surrounding areas, it has long been the case that many properties are listed below what they’ll likely sell for. I’ll call this “low pricing.” Low pricing is a strategy intended to attract the attention of a wide range of buyers and to generate multiple offers. Most properties around here follow this strategy, but it’s not the only possibility. “Transparent” pricing is a newer term for the classic pricing strategy followed in most other areas. It refers to choosing a list price that is at a value [...]
THE OUTLOOK: North Berkeley & Berkeley Hills, Winter 2020-21 wrap-up
As always in the March/April newsletter, I’m going to review both the data for the past year, and also look at the winter quarter results (for December through February). *** 2020 Results: 2020 was a surprisingly solid year in local real estate, despite a big lull in activity with the first shelter-in-place. After just a few weeks, though, real estate was deemed an essential service, and activity gradually picked back up. Berkeley Hills 150 properties sold in the Berkeley hills in 2020, which is a bit fewer than in 2019, but there were also fewer homes on the market. Properties [...]
REAL ESTATE ANSWERS: What is home fire hardening, and do I need to do it?
What is home fire hardening, and do I need to do it? “We’ve learned from recent fires. Hardening your home and keeping the 5 feet closest to your house clear of flammable materials (including patio furniture and décor) greatly improves its chance of surviving a fire.” CALIFORNIA FIRE SAFE COUNCIL Fire hardening is making changes to an existing home to make it more resistant to wildfire. According to the Fire Safe Council, your home can catch fire in 3 main ways: from ember storms, where small pieces of burning material are blown in front of a fire (embers can apparently [...]
HOW TO CHOOSE LED BULBS
HOW TO CHOOSE LED BULBS I spend a lot of time looking at light fixtures and choosing bulbs, because replacing light fixtures is one of the most cost-effective ways to create an updated look in a home for sale. Choosing LED bulbs is surprisingly complicated, but here’s the step-by-step process that I use: 1: Figure out what shape bulb you need (including the size of the bulb and the type of socket). 2: Make sure to get bulbs for enclosed fixtures if your fixture is enclosed. 3: Choose the color temperature. (I always go for 2700K, which is like an [...]
THE OUTLOOK: North Berkeley & Berkeley Hills, Fall 2020 wrap-up
I find this sort of amazing given what’s been going on in the world this year, but our real estate market has continued to do remarkably well through the fall season. The combination of super low interest rates and the desire to have a better space to shelter in has kept demand from buyers strong. At the same time, fewer property owners have put their homes on the market — for Berkeley as whole, the number of homes for sale from January through November this year was down 14% compared to the same period last year. With low supply and [...]
LOW RATES & HIGHER CONFORMING LOAN LIMITS
LOW RATES AND HIGHER CONFORMING LOAN LIMITS Interest rates are low, low, low right now! As I write this, the 30-year fixed rate is lower than it’s been since Freddie Mac began tracking mortgage rates in 1971. While it’s not surprising that rates are low given the economic impacts of the pandemic, it is still an opportunity for both buyers getting new loans and homeowners who can refinance their existing loans. Fixed rate 30-year conforming loans (up to the loan limits discussed below) can in many cases be had for under 3%. Even larger-amount jumbo loans, which were challenging to [...]
THE OUTLOOK: Berkeley (North & Hills), Summer 2020 wrap-up
Between the pandemic, the wildfires, and the blanket of smoke we’ve had to live with lately, one would think that the local real estate market would have gone into hibernation, but this has not been the case. The pandemic has caused many people to re-evaluate where they want to live. We’ve been spending much more time in our homes— for work, for school, for meals, for entertainment, for exercise, for leisure— so having the right indoor and outdoor spaces for those activities is more important than ever. Many people working from home are moving to take advantage of lower real [...]
ARE YOU UNDER-INSURED?
ARE YOU UNDER-INSURED? The huge wildfires this year are a reminder that we should all periodically evaluate our insurance coverage, and make sure that we could rebuild if we ever needed to. Most insurance policies auto-renew each year, and the coverage may not keep pace with rising building costs. To get a very rough sense of the adequacy of your existing coverage, take your total coverage amount and divide it by the square footage of your home to calculate how much you would be able to spend per square foot if you had to rebuild. Experts say that $250-$300 per [...]
THE OUTLOOK: Berkeley (North & Hills), Spring 2020 wrap-up
I’m going to shift focus somewhat for this issue of The Outlook. We’re living in a time right now when many of our usual concerns seem trivial. Compared to the importance of the growing calls for an end to systematic racism and violence against black people and reforms in the way we police our communities, and compared to coping with a global pandemic and its effect on our lives and livelihoods, real estate market statistics seem like a side note. However, there are a variety of reasons why people still want to know what’s happening in the local real estate [...]
REAL ESTATE ANSWERS: Why should you pull a permit for work done on your home?
Why should you consider pulling a permit for work done on your home? The #1 reason you should get a permit if you’re having work done on your home that requires it is the obvious one: it’s required by law, and you can have problems with the City if they discover you don’t have a permit, either as the work is being done, or after the fact. That said, it’s definitely the case that many homes in our area have work that was done without permits. Homeowners choose to skip permits for a variety of reasons, including the cost of [...]
Home Loans, Interest rates, and Real Estate Newsletters
HOME LOANS AND INTEREST RATES x Interest rates on home loans have been very low lately! If your interest rate is close to, or above, 4%, it could be worth your while to contact your favorite loan person and see if you could benefit from refinancing your loan. x (See the update below.) Also, the limit on conforming loans (which can be sold to Fannie Mae and Freddie Mac) in our area was increased for 2020 to $765,600, up from $726,525 last year. Loans below that limit often have lower interest rates than those above. UPDATE, March 20, 2020 While [...]
REAL ESTATE ANSWERS: I’m considering selling my home next year. What should I start doing now to get ready?
I’m considering selling my home next year. What should I start doing now to get ready? It’s a well-known fact that right now is not the optimal time to sell a home in our area. It is, however, the right time to start getting things in place if you’re thinking of selling next year, so that you’re ready for the very busy selling season. Here are the first things to do to get ready. (1) Think about where you’ll be when your home is on the market. Do you already have your next home set? Are you renting or buying [...]
Bridge Loans
BRIDGE LOANS Did you know that it’s possible again to get a bridge loan? A bridge loan is a short-term loan that can be used to access the equity in a home you are planning to sell in order to purchase a new home. Following the financial crisis in 2008, lending standards got extremely strict, and bridge loans vanished from the market. Non-cash buyers who wanted to buy a new home before selling their old one needed to either (1) show that they had enough income to make payments on the loans on their existing home and on their new [...]
REAL ESTATE ANSWERS: Why do list prices sometimes increase after a property has been on market for a while?
Why do list prices sometimes increase after a property has been on the market for a while? In most parts of the country, properties come on the market, and if they don’t sell after a period of time, motivated sellers will reduce the list price to attract buyers. Around here, if a property is not getting the interest the seller hoped for, sometimes the seller will reduce the list price, but other times the list price will increase. What’s going on? The answer lies in the strategy that was followed in choosing the original list price. In other areas, the [...]
Emergency Alerts
EMERGENCY ALERTS Have you signed up yet for Alameda County emergency alerts? The system is called AC Alert, and it’s very easy to sign up to receive notifications from city and county agencies in the case of an emergency. Just go to ACalert.org online, and you can sign up to receive notifications by voice message, text message and/or email. The City of Berkeley previously used an alert system called BENS, but this system is no longer active, and subscribers to BENS are not automatically signed up for AC Alert. There are other alert systems that have slightly different focuses. I [...]
REAL ESTATE ANSWERS: How have the massive fires in recent years affected homeowner’s insurance locally?
How have the massive fires in recent years affected homeowner’s insurance locally? I spoke with Ruth Stroup with Farmers Insurance, who is always a great source of information about the insurance world, and asked her what changes she’s seen as a result of the tragic fires we’ve had in California over the last few years. Ruth said that the huge claims in back-to-back years from the fires have affected insurance companies’ ability to get reinsurance. (Reinsurance pays a share of the claims in the case of massive losses like with the fires, and is a critical component of the insurance [...]
I’VE MOVED!
I’VE MOVED! After 16 years with the same brokerage, I decided it was time to make a change, and I’m delighted to share that I’ve joined The Grubb Company! I chose The Grubb Company after lots of information gathering, and discussions with various brokerages. The Grubb Company was the clear choice, because of their longstanding commitment to our area (they have been in business for over 50 years), their excellent market share, their commitment to quality, the fantastic support staff, and most importantly, the caliber of the agents. The average agent at The Grubb Company does more business (measured by [...]
UC BERKELEY: MORE ACCOLADES!
We already know that UC Berkeley is one of the top universities in the world, but I still love to see it getting the recognition it deserves. In the latest rankings of graduate programs by US News & World Report, there were many Cal programs that were among the top-rated. Cal was ranked #1 (or tied for #1) in Biological Sciences, Computer Science, English, Psychology and Sociology. I was especially excited to see the graduate program in Economics (which is where I got my PhD) also tied for the #1 position! Other Cal graduate programs that ranked in the top [...]
REAL ESTATE ANSWERS: How old is the housing stock in Berkeley?
Many times over the years, when counseling new buyer clients, I have pointed out that the majority of the homes in Berkeley are older, built in the early part of the 1900s. I know this anecdotally, and from looking at so many homes over the years, but I had not seen any actual figures. I thought it would be interesting to look at the data, so I went to my handy public records database and looked at records for the single family homes in Berkeley. A couple things to keep in mind: (1) I only looked at structures that are [...]
REAL ESTATE ANSWERS: What’s changing as a result of the Berkeley measures on the 2018 ballot?
There were 2 local measures on the November 2018 ballot that were approved by voters that will impact local real estate going forward. The first was Measure P, which passed with 72% of voters saying yes. Measure P increases the Berkeley city transfer tax on property sales at prices over $1.5M, from 1.5% of the sale price, to 2.5%. Property sales at prices of $1.5M or less will still be taxed at the old rate of 1.5%. The measure says that the funds raised are intended to be used for “general municipal purposes such as navigation centers, mental health support, [...]
FREE STUFF (How to give it away)
I am a big fan of a good purge, and the new year is a great time to get rid of unwanted stuff. At the same time, I hate to throw anything away that someone else might be able to use, and non-profit donation centers only take certain items. For things that can’t be donated, I give them away using Freecycle, Next Door or Craigslist. I don't want to just leave things at the street until someone takes them -- it's unsightly, and the items can get dirty, or wet. I often don’t have time to coordinate schedules with people [...]
Go UC!
Money magazine just released their latest ranking of colleges and universities, and the University of California got 5 of the top 11 spots! Wow! To come up with the rankings, Money combines measures of “Quality of Education” (based largely on graduation rates), “Affordability” (net costs after financial aid, borrowing, time to graduation and student loan repayment rates) and “Outcomes” (measured mostly by alumni salary data). UC San Diego ranked 2nd overall, after only Princeton University. UC Irvine was 3rd, UCLA came in 4th, UC Berkeley was 7th, & UC Davis was ranked #11. One can definitely quibble about the order, [...]
REAL ESTATE ANSWERS: Why are there so many wild turkeys around these days?
This is not exactly a real estate question, but it is something I have been really wondering about myself! When I was growing up, I don’t remember ever encountering a wild turkey. Now it seems they’re everywhere, not just in the Bay Area, but in other parts of the country as well. A quick google search turns up articles about the abundance of wild turkeys in Massachusetts, Alabama, Chicago, Tennessee, Ohio, and lots of other places. Just a few days ago, I sat in my car at a stoplight and watched a gang of turkeys cross Marin Avenue at the [...]