The market over the summer in the Berkeley hills was quite good. We all know that prices are determined by supply and demand, and both were in our favor. The supply of homes on the market was relatively low. There were 40 sales and 42 active listings in the Berkeley hills over the summer. The number of active listings was substantially lower than the 73 active listings in the spring, and the 68 active listings last summer.
At the same time, demand was strong, helped in part by low interest rates, which are back under 4% in many cases. [If you’ve been thinking about doing a refinance, now is a great time to call your favorite loan person!]
Put together the strong demand and the limited supply of homes for sale, and we got a summer where properties sold quickly (in an average of 16 days on the market), and for good prices.
The median sale price for the Berkeley hills from June through August was $1,567,775. This is up 8% from the spring season, and up 14% from last summer.
The average sold price per square foot was $770, which is down very slightly from the spring (when it was $772), but up 8% from Summer 2018.
Three of the properties that sold over the summer had price reductions, and one property had a list price increase (see below for a discussion of list price increases). A majority — 88% — of the sales were for more than list price. For the properties that sold above list, the average was 22% over.
Where reported in the MLS, the average number of offers was 4. The highest number of offers received (19) was for a very funky fixer on San Luis Road with amazing Bay views. It needed a lot of work, but it was a great project, so it’s not surprising that it attracted so much interest.
Beyond the hills, there are signs out there that the market may be slowing down, which will make strategic pricing and great preparation increasingly important. We are very lucky though to live in such a desirable location, both for our own enjoyment, and because there are so many buyers who want to live here. Even if the market calms down a bit, we’ll still do well!