THE OUTLOOK: North Berkeley & the Berkeley Hills, Spring (Q2) 2025 results

THE OUTLOOK: North Berkeley & the Berkeley Hills, with results from Spring (Q2) 2025.

Spring is traditionally the busiest season in the Berkeley real estate calendar, and 2025 was no exception. Across both North Berkeley and the Berkeley Hills, the second quarter brought a flurry of activity, supported by sustained strong buyer demand. Even as interest rates remained elevated and economic signals remained mixed, the local market showed resilience. Price trends this spring were driven in large part by the mix of properties sold. North Berkeley saw more condo sales, and the Hills saw more higher-end sales; these shifts shaped price statistics for each area. Underneath those shifts, home values were mostly stable, as they have been for the past year.

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North Berkeley

In North Berkeley, market conditions this spring looked a lot like last year, with 43 active listings and 32 sales. The mix of properties included a jump in condos—9 sold this quarter, versus just 2 in Q2 last year. Condos are generally smaller and sell for less per square foot, so this shift pulled down overall price metrics. The median sold price was $1,475,000, and the average sold price per square foot was $1,005—up 2% from last quarter, but down 2% from a year ago. In general, these numbers reflect the variety of properties sold rather than a change in underlying values.

Homes in North Berkeley sold quickly, averaging just 16 days on the market. Only two properties needed price reductions before finding a buyer, and 88% of the sales were over list price. Among those, the average premium was 28%, with several homes selling for 50% or more above asking. The highest price per square foot was $1,436, although that figure included some uncounted bonus space. These results show why the “low list price” strategy sticks around: even in uncertain times, getting lots of people excited and bidding on a property yields the best results.

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Berkeley Hills

The Hills saw an uptick in both listings and sales this spring. There were 89 active listings—up from 62 last year—and 52 sales, compared to 31 in Q2 2024. The median sold price came in at $1,607,500, up 7% from last quarter but down slightly (less than 1%) from the same time last year. Average price per square foot was $823, a 2% decline from Q1 and an 8% drop year-over-year. This drop reflects both the increased inventory and the fact that nine homes over 3,000 square feet sold this quarter, versus just two a year ago—larger homes tend to sell for less per square foot.

Homes in the Hills took a bit longer to sell—25 days on average—and six properties needed price reductions before finding a buyer. Still, 83% of sales were over list price, with those going over averaging 24% above asking. The standout sale in terms of over-list and price per square foot was a property that sold for 65% above asking at $1,318 per square foot. Again, this result highlights the effectiveness of pricing strategically low to attract multiple offers.

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Looking Ahead

The summer season is now underway, with the usual Independence Day lull. Over the summer, and especially around holiday weekends, there are fewer buyers in town looking for a home, and knowing this, fewer sellers choose this moment to come on the market. Often, the declines in supply and demand balance out, so we usually just see declines in activity—not necessarily prices—over the summer. Activity then picks up again after Labor Day.

Regardless of timing, Berkeley remains a strong and desirable market. Sellers with good properties who approach the market with a smart pricing strategy and strong preparation continue to get great results.