THE OUTLOOK: North Berkeley & the Berkeley Hills, with results from Summer (Q3) 2025.

How is the Real Estate Market Doing? The current economic and political climates, combined with interest rates in the mid-6% range (even after the Fed’s September rate cut), continue to weigh on buyer confidence. The good news, though, is that Berkeley real estate remains strong—and even gained ground in the third quarter. Both North Berkeley and the Berkeley hills posted solid results, reflecting continued demand despite broader uncertainty.

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North Berkeley

In North Berkeley, the median sold price in Q3 2025 was $1,575,000—up 7% from last quarter and 8% from the same time last year. The average sold price per square foot was $925, which is down 8% from Q2, but still 4% higher than a year ago. Inventory was typical for the summer season, with 48 active listings, and 20 properties sold, averaging just 17 days on the market.

Notably, none of the sold properties required a price change before selling—a sign of continued strength in the local market. There were no short sales or bank-owned sales, and 60% of buyers paid all-cash—the highest cash sale percentage in North Berkeley since at least 2000. Nine out of ten homes sold above list price, with those going over by an average of 35%. These stats point to multiple interested buyers for most homes on the market.

These results are especially strong considering that 7 of the 20 sales in North Berkeley this quarter were condominiums. Condos typically sell for less than single-family homes, and the condo market has remained sluggish since the pandemic, when buyers prioritized space and privacy. Just as condo demand was starting to recover, rising interest rates delivered another blow—not just to condos, but to the market overall. Yet despite these headwinds, the North Berkeley market overall posted gains.

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Berkeley Hills

In the Berkeley Hills, the median sold price in Q3 2025 was $1,677,500—up 4% from last quarter and 16% from a year ago. The average sold price per square foot was $885, up 8% from Q2, and 1% higher than a year ago.

There was more inventory than last summer, but the 82 active listings were still within the normal range for this area. Thirty-two properties sold in the third quarter, averaging 25 days on the market, the same as this time last year. Four of those properties required price changes before selling.

There were no short sales or bank-owned sales, and 28% of buyers paid all-cash. Four out of five homes sold above list price, with those going over by an average of 28%. Only three of the 32 sales in the hills were condominiums—a small part of the Hills market.

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Looking Ahead

We’re fortunate to live in a market where—even with a slow condo segment and a more cautious buyer pool—strong demand, limited inventory, and competition for desirable homes remain the norm.

October tends to be an active month in local real estate, but activity usually slows as we head into late fall and the holiday season. Buyers become less active, and fewer homes are listed for sale. It’s a great time to regroup, reassess, and begin planning for the new year. If I can be of any assistance as you consider your next steps, I’m always happy to talk.