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, borrow against it, benefit from tax advantages, and protect your wealth from inflation, since home values tend to rise over time.

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North Berkeley
The biggest change in North Berkeley this quarter was a sharp increase in inventory. There were 42 active listings in Q1—more than double the number from the same quarter last year. Sales also increased significantly, with 22 homes sold, compared to just 12 in Q1 2024.

Even with more listings, competition is still very much part of the story in North Berkeley. Properties sold quickly, averaging just 18 days on the market. Half of all sales were all-cash. 82% of the homes sold above the list price, and those that did went, on average, 30% above asking.

The median sold price for the quarter was $1,455,000. That’s down from the end of last year, but represents a 1% increase compared to Q1 2024. The average sold price per square foot was $988—up 4% from last quarter, but down 3% from a year ago. When median price and price per square foot move in different directions, that reflects differences in the types and sizes of homes that sold, rather than any real shift in underlying value.

Buyer activity is heating up as we head into our busiest season. I have heard multiple accounts of big bidding wars and high outcomes already this spring, but we’ll have to wait for the next round of closings to see those results. Desirable, well-located homes in North Berkeley are still very limited in supply, and those that come on the market with strategic pricing and presentation will continue to draw strong interest.

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Berkeley Hills
Inventory also rose in the Hills, but by a much smaller amount than in North Berkeley, with 58 active listings in Q1 2025, compared to 53 a year ago. There were 23 completed sales this quarter.

The median sold price was $1,500,000, down 14% from Q1 2024 and 3% from Q4. The average sold price per square foot was $842, a 6% decrease year-over-year, but up 3% from the prior quarter. These numbers may seem discouraging at first glance, but there were a lot of fixers included in this quarter’s sales. One notable outlier was a 4-bedroom house on Rose Street that sold for just $395,000—that’s $209 per square foot! It was a major fixer with a lifetime tenant, and it sold for less than land value. At the other extreme, a 2-bedroom home on Vermont, listed at $995,000, sold for $1,770,000, or $1,360 per square foot.

Homes in the Hills sold in an average of 27 days, down from 38 a year ago. Four sales involved price adjustments, but 74% of homes sold over list price. Those that went over list price sold, on average, 24% above asking. 35% of Q1 sales in the Hills were all-cash.

Overall, I would say that the first-quarter results were mixed. Insurance challenges continue to affect high fire-risk zones like the Berkeley Hills, making buyers extra cautious. Properties that are smartly priced with great presentation are selling well, or even extremely well (like that house on Vermont). Properties that miss the mark on price or preparation, on the other hand, are not.

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Looking Ahead
The first quarter reflected a market with more to offer—and buyers who are still highly engaged. Interest rates remain a factor, and insurance concerns continue to affect higher-risk areas like the Hills. But with more inventory, steady demand, and strong results for well-prepared homes, both neighborhoods are entering the spring season on solid footing.