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® CA DRE LICENSE #01355514
The Grubb Company 1656 Shattuck Avenue Berkeley, CA 94709
Direct: (510) 390-5406
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 [...]
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 [...]
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 & 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 in the Berkeley hills (272 active listings) than we’ve seen for years, but it was still not enough inventory for all the interested buyers.
****
NORTH BERKELEY
115 North Berkeley properties sold over the year, and 79% of the sales were for more than list price. List prices have not increased as much as values have, so all last year (and continuing now) we saw even more serious overbidding than is typical for this area. For the properties that sold over list price, the average was 30% over, but more than 50% above list was not uncommon. Some Berkeley properties sold as high as double the list price.
The median sold price for 2021 in North Berkeley was $1,650,000, which was an increase of 22% over 2020. Sold price per square foot, at $984 per square foot, was 11% higher than the previous year.
The winter season just ended (December 2021 through the end of February 2022) was very similar to the start of last year, with intense buyer interest. Inventory was back to its usual low level (there were only 18 active listings, and 17 sales for the 3 months), but buyers again seemed extra motivated and there were some epic bidding wars.
The median sold price for the winter season was $1,550,000. This figure is lower than for 2021 because more small properties sold, but it is 30% higher than last winter. The average sold price per square foot from December to February was a whopping $1091, which is up 10% from the fall, and up 29% compared to last winter.
****
BERKELEY HILLS
234 properties sold in the hills during 2021. 52% of them sold above list price, by 25% over on average, but again, far far greater overbids (by $1 million or more) were also happening.
The median sold price in 2021 for the Berkeley hills was $1,700,000, which was an increase of 13% over 2020. Average sold price per square foot, at $861 per square foot, was 12% higher than the previous year.
For this past winter season (December 2021 through the end of February 2022), inventory was low (there were 44 active listings, and 38 sales for the 3 months), but buyer interest was intense. The median sold price for the winter season was $1,925,000, which is 24% higher than last winter. The average sold price per square foot was $899, which is up 11% from the fall, and up 12% compared to last winter.
****
So far spring, 2022 is looking like more of the same. Inventory is picking up somewhat, but the prospect of higher interest rates to come (because of higher inflation) is keeping buyers motivated and the competition for available properties very high.
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 in Berkeley (there were 9 over the fall season in North Berkeley and 15 in the hills), and for the first time ever, we’re regularly seeing sales over $3M (there were two in North Berkeley and 6 in the hills in the fall).
****
NORTH BERKELEY
There were 49 active listings in North Berkeley over the fall, and 37 properties sold. These figures are higher than both this past summer, and last fall. The average number of days on the market for the sold properties was 13, which means that almost everything sold as soon as the sellers started accepting offers.
The median sold price from September through November was $1,715,000 in North Berkeley. This is up 8% from the summer, and up 23.5% from last fall. The average size of the sold properties was a bit larger than is typical, which corresponds with a more modest increase in sold price per square foot. On average, properties in North Berkeley sold for $988 per square foot, which is 5% higher than over the summer, and up 7% from last fall. Most of the sales — 89% — were for more than list price, on average 31% above list price for those that went over. Eleven of the sales were for 40% or more above list price, up to a high of 67% over list.
****
BERKELEY HILLS
There were 90 active properties in the hills over the fall, and 73 properties sold. The average number of days on the market for the sold properties was 14.
The median sold price from September through November was $1,730,000. This is up 8% from the summer, and up 13% from last fall. Average sold price per square foot over the fall was $812, which is lower than over the summer, but up 3% from last year.
Most of the sales —79% — were for more than list price, on average 23% over, but results were mixed. 15 of the sold properties went for list price or under. At the opposite extreme, 11 of the sold properties went over list price by more than 40% (up to a high of 81% over). Eleven of the sold properties needed price changes — 3 reduced their list price, and 8 increased it — before finding a buyer.
****
For the winter season (starting December 1st), the weather has cooled off, but the market has heated way up, in a way I’ve never seen before in my 19 years in real estate. The combination of a lot of motivated buyers and a lack of inventory (because winter is usually — at least in the past — not the best time to sell) has led to some epic bidding wars. We’ll see those results in the next issue. Until then, I send you my best wishes for the holiday season, and for all of the new year!
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 address waste leaking from the laterals into the ground. Instead, the issue they’re targeting is rainwater entering through cracks in older sewer laterals, which is then carried to the wastewater treatment plant, where it can overwhelm the system.
At a recent office meeting, John Karnay (one of the owners of the Grubb Company) pointed out that some old, cracked sewer laterals could be functioning as de-facto French drains, letting rainwater in and carrying it away from the property. If that was the case, when the lateral is replaced, that drainage channel would be gone (because the rainwater can’t get in when the pipe is no longer cracked), and so it’s possible some properties with new laterals could see water building up in new places.
This is mostly theoretical, but it’s not a bad idea to keep an eye on your property’s drainage for a while after the sewer lateral has been replaced.
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® CA DRE LICENSE #01355514
The Grubb Company 1656 Shattuck Avenue Berkeley, CA 94709
Direct: (510) 390-5406