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 & 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, 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 on the market for 22 days on average, which is pretty typical. Not so typical were the prices. The median sold price from March through May in the hills was $1,675,000. This is an increase of 8.2% from the winter, and an increase of 11.7% from last spring. With relatively high inventory, these results are even more impressive. There were 8 properties that sold under $1M, and 6 of these were condos. 29 properties sold between $1M and $2M, and 22 properties sold above $2M. 78% of the sales were for more than list price, and those averaged 27% over list (almost double the average of 14% over list price last quarter). The average number of offers (when reported) was 7 per property, and the highest number of offers was 29, for a mid-century with great views and a level yard.
The average sold price per square foot was $899 this spring. This is up 12.5% from the winter, and up 23.4% from last spring. There was a huge range in sold price per square foot, from a low of $499 (for a fairly large, tenant-occupied property), to a high of $1430 (for the smallest single family home that sold).
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NORTH BERKELEY
In North Berkeley, there were 33 active listings, and 25 properties sold during Spring 2021. These numbers are a little higher than last spring (not surprisingly, given that was the start of the pandemic shut-downs), and they’re pretty similar to Spring 2019. Properties were on the market for 27 days on average, which is on the high side, reflecting longer times to sell for a complicated fixer and 2 condos.
The median sold price was $1,580,000, which is an increase of 18.1% from last spring. 5 properties sold under $1M — 4 condos and a fixer. 16 properties sold between $1M and $2M, and 4 properties sold above $2M. 72% of the sales were for more than list price, and those averaged 30% over list.
The average number of offers, when reported, has been between 4 and 6 offers per property over the last several years. This number is up significantly this spring. The average number of offers for Spring 2021 was 9 per property, and the highest was 26 offers, for my listing on Grant Street.
Over the spring in North Berkeley, the average sold price per square foot was $967. This is an increase of 14% from last quarter, and up 5.8% from Spring 2020. Sold price per square foot ranged from a low of $594 (for the second-largest sold property) to a high of $1440 (for the smallest single family home that sold).
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Interest rates remain very low, interest in Berkeley properties remains very high, and the business of real estate is gradually getting back to its pre-pandemic practices. Offices are mostly open, but many of us are still working primarily from home. The biggest change is that brokers’ tour and open houses are allowed again. Hope to see you out there one of these days!
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 the physical book-lovers among us!). Everyone should have access to these resources, both for their own entertainment and personal growth, and because access to information is essential for the proper functioning of our society.
For these reasons, and also to support my marvelous mother-in-law, who has been involved with the Friends almost as long as she has been in Berkeley, I just sent in a donation to support the Friends of the Berkeley Public Libraries. The Friends are a nonprofit organization whose purpose is to “support and expand the educational, cultural, and outreach programs of the Berkeley Public Library.”
If libraries are important to you too, you can join me in supporting the Friends by donating and/or becoming a member at www.BerkeleyLibraryFriends.org — click “Get Involved.” You can also help by buying or donating books at the Friends bookstore at 2433 Channing Way. See the website above for more details!
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 that the seller will accept for the home; the expectation is not that there will be a bidding war and the price will get bid up.
In deciding which of these strategies makes more sense for a particular property, the biggest consideration is whether there will be multiple interested buyers for the property. If you go with a low price and only get one offer, that offer may very well be at, or even below, the (low) list price. For this reason, for a property that is not something that a typical buyer is looking for (because of size, style, customization, etc.), or for properties in the upper price ranges (that are too expensive for most buyers), it makes sense to choose a transparent price. Listing a property low is only a good idea if there are likely to be multiple buyers bidding the price up.
For properties of broad interest, there are several reasons why the “price it low and generate bidding” strategy is beneficial. Multiple offers push up the price to the upper limit of what the buyers are willing to pay, so you know you’re getting top dollar. They also give the buyer with the winning offer confidence that the property is a good one (“If all these other people also want it, it must be good!”), and buyer confidence is important in holding deals together. Buyers may also waive contingencies they do not need and choose shorter time periods.
If you’re choosing a transparent price, the right price to choose is the market value of the home, determined by what other similar properties have sold for. If you’re pricing low, though, the inevitable question is “How low do you go?”
The most advantageous “low” list price is one that is similar to what other properties like yours are listed at. You want your home to look good relative to other homes that are for sale. If you list it at a price higher than similar properties, it will end up being compared by buyers to other homes that are bigger or otherwise more expensive, and it won’t compare favorably.
In normal times for this area, “low” list prices have been around 20-30% below market value. Lately, though, list prices are a lot further below market value. Why?
Sale prices/market values have shot up since the beginning of 2021, but typical list prices move more slowly. So far this year, homes are selling quite commonly for 30%, 40%, 50%, or even more above list price, up to double! Why haven’t list prices gone up as the market has risen? It’s a coordination problem. When other properties on the market are still choosing the same list prices as last year, a strategic seller will do the same, so that their home is compared by buyers to the right segment of the market.
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