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, 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 [...]
COMPLETED SALES, Berkeley Hills, 4th Quarter, 2022
Click to see details and photos of properties SOLD in the Berkeley Hills, 10/1/2022 - 12/31/2022. Note that, after you follow the link, you can click on each individual property to see photos and more details. Click "Close" near the top to return to the list. * For the purposes of this newsletter, “Berkeley Hills” refers to the area bounded as follows: north of campus, east of a line heading north on Spruce from campus, cutting over on Los Angeles to Arlington, and then north along Arlington to the Kensington border.
COMPLETED SALES, North Berkeley, 4th Quarter 2022
Click to see details and photos of properties SOLD in North Berkeley, 10/1/2022-12/31/2022. Note that, after you follow the link, you can click on each individual property to see photos and more details. Click "Close" near the top to return to the list. * For the purposes of this newsletter, “North Berkeley” is defined as the area bounded by University Avenue in the south, the line of Sacramento Street to the west, the Berkeley border to the north, and below Arlington Avenue, Los Angeles Avenue, and Spruce Street (south of Los Angeles) to the west.
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 on average after 19 days on the market, which is pretty typical. Out of a total of 87 sales during the year, only 9 properties had price adjustments before selling (3 were price increases, and 6 were price reductions). 87% of the sales were at prices above list price, and those sold on average for 32% more than list.
The figures for the whole year are of course combining the results from the crazy spring and the much slower latter portion of the year. The fourth quarter data (for October through December 2022) is more indicative of where the market is now. In the fourth quarter, the median sold price for North Berkeley was $1,402,500, which is down 15% from the fourth quarter of the previous year. Average sold price per square foot was $1000, which is also down, but only slightly, by 0.5% compared to the same period in 2021. There was a big change in the number of properties listed for sale during the fourth quarter this year. There were only 20 properties on the market in North Berkeley, compared to 33 during the same period in 2021.
***
BERKELEY HILLS:
In the hills, the median sold price for 2022 as a whole was $1,870,000, which is up 10% from the previous year. Average sold price per square foot was $953, which is also higher, in this case up 11% compared to 2021. Properties in the hills sold on average after 19.6 days on the market, which is the quickest we’ve seen since 2016. There were not a lot of price changes in the hills either. Out of 181 sales, there were only 8 price increases and 7 price reductions. 81% of the sales were at prices above list price, and those sold on average for 33% more than list.
Looking at just the fourth quarter, the median sold price for the hills was $1,661,541, which is down 10% from the fourth quarter of the previous year. Average sold price per square foot was $815, which is also down, but only by 1% compared to the same period in 2021. There were 40 properties on the market in the hills—just under half the number of listings during the same period in 2021.
***
We start 2023 with interest rates about double what they were at the start of 2022. Rates are in the mid-6% range now, and they were in the low 3% range in January 2022. The higher rates have had a big impact on affordability, which reduces demand for properties. Supply though is also lower, because sellers are concerned about market conditions, and they also don’t want to give up existing low-interest loans and borrow at higher rates on a new property.
For people who would be buying their new home without a loan, this is actually a fantastic time to make a move. For those who would be trading a low-interest loan for one with a higher rate, keep in mind that more favorable pricing could more than offset higher interest costs.
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, as people factor in the impracticality and required upkeep. Some open shelving for display space rather than everyday use is still popular.
- Fancy statement-making range hoods are less popular, with more people opting for something simpler to fit in with a clean aesthetic.
- Countertop materials can go in two directions: we’ve been seeing more natural stone with color and patterns of flowing wavy movement, but a clean, simple quartz is also popular. Which of these makes sense in a design depends on the surrounding elements. Is the stone the statement piece in an environment that is otherwise clean and simple, or are there surrounding elements (wood grain on cabinets, or pattern on the backsplash or flooring) with which you don’t want to compete?
- Solid slab backsplashes, generally in the same material as the counters, are becoming more popular.
- Microwaves over the range are feeling dated.
- The trend from last year toward more natural materials like rattan or rope is continuing. In the kitchen, we see it on pendant lights and seating.
- For hardware, last year we saw a lot of matte black for faucets, cabinet handles and lights. Brass or gold finishes have also been popular for these items. These finishes have not gone away, but designers say that polished chrome is coming back, which is always a good classic choice.
Kitchens are an important component of property value, so it’s a good idea to consider how long you are expecting to be in the house if you are planning a remodel.
If you are going to sell the property fairly soon, you’ll get the best return if you factor in current trends. As the time until you’ll want to sell gets longer, the more it makes sense to choose more classic and neutral finishes for the big-ticket and harder-to-change components. Beyond a certain point though (20 or 30 years?) anything you choose today is likely to feel dated by the time you sell, so you can feel free to go for whatever you like the most!
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 we see in the local market. The winter season was defined as December through February, corresponding to the slowest time of the year in our market, and spring (March through May) corresponds with the busiest. Going forward, I am going to instead focus on quarters as traditionally defined. So instead of winter (December, January, February), I’ll track and discuss Quarter 1 (January, February, March), and so on. Since real estate transactions take weeks to close, roughly half the properties that go into escrow in one month close (and show up in the sale data) the following month. This means that switching to quarters won’t make a big difference conceptually, and there are benefits to using quarters in terms of chartmaking and recordkeeping.
COMPLETED SALES, Berkeley Hills, 4th Quarter, 2022
Click to see details and photos of properties SOLD in the Berkeley Hills, 10/1/2022 – 12/31/2022.
Note that, after you follow the link, you can click on each individual property to see photos and more details. Click “Close” near the top to return to the list.
* For the purposes of this newsletter, “Berkeley Hills” refers to the area bounded as follows: north of campus, east of a line heading north on Spruce from campus, cutting over on Los Angeles to Arlington, and then north along Arlington to the Kensington border.
COMPLETED SALES, North Berkeley, 4th Quarter 2022
Click to see details and photos of properties SOLD in North Berkeley, 10/1/2022-12/31/2022.
Note that, after you follow the link, you can click on each individual property to see photos and more details. Click “Close” near the top to return to the list.
* For the purposes of this newsletter, “North Berkeley” is defined as the area bounded by University Avenue in the south, the line of Sacramento Street to the west, the Berkeley border to the north, and below Arlington Avenue, Los Angeles Avenue, and Spruce Street (south of Los Angeles) to the west.
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