THE OUTLOOK: North Berkeley & the Berkeley Hills, Q4 and 2025 (annual) results

THE OUTLOOK: Berkeley Real Estate Market Update, Q4 and full-year 2025 results

The real estate market in Berkeley held up well in 2025, mostly because Berkeley continues to be in great demand, but also thanks to a slight downward trend in interest rates. Rates started 2025 at around 7%, and ended the year in the low 6% range. This shift helped bring some renewed energy into the market, particularly in the second half of the year.

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North Berkeley

For 2025, the median sold price in North Berkeley was $1,600,000, down 9% from 2024. However, that drop reflects a change in the types of properties sold—particularly more condos—rather than a true decline in home values.

In fact, the average price per square foot rose 1%, to $992, suggesting prices held steady overall.

There was strong activity throughout the year:

• 132 active listings (the most since 2010)
• 103 properties sold
• Homes sold in just 17 days, on average
• 87% sold over asking, by an average of 32%
• Only three sales required price reductions all year

The fourth quarter (Q4) was particularly strong in North Berkeley:

• Median Q4 sold price: $1,803,000
• Average Q4 price per square foot: $1,027

• The highest sold price for Q4 in North Berkeley was a striking mid-century property on Yosemite Road that sold for $3.4 million. The highest sold price per square foot was $1,668, for a small updated bungalow on Ensenada Avenue. (That was one of my listings. I’m happy to tell you more about it if you’re interested.)

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Berkeley Hills

The Berkeley Hills also posted solid numbers in 2025. The median sold price rose 2% to $1,600,000, while the average price per square foot dipped 3% to $845—again reflecting shifts in the mix of homes sold, not a decline in value.

Inventory was high:

• 214 active listings (highest since 2021)
• 151 homes sold
• Average time on market: 25 days (compared to 30 days on average in 2024)
• 78% sold over asking, by an average of 26%
• 21 homes required price adjustments (a good reminder that choosing the right strategic list price is key)

As is typical, Q3 had peak results for the year, while Q4 was slower:

• Median Q4 price: $1,580,000 (up 2% from Q4 2024)
• Average Q4 price per square foot: $844 (up 4% from the previous year)
• There was a wide range in sold prices, from two properties in the Hills that sold under $1M (a fixer and a condo), to four properties that sold over $3M.
• Price per square foot ranged from $457 (for a fixer) all the way up to $1,364 for a classic home in the lower hills on Indian Rock.

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Berkeley Overall

The broader Berkeley market was also steady in 2025. Across all neighborhoods:

• Median sold price: $1,475,000 (up 5%)
• Average price per square foot: $910 (almost unchanged from 2024)
• Average time on market: 27 days
• 75% of homes sold over list price

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Looking Ahead

Many forecasters expect mortgage rates to continue trending downward over the next year or two, likely boosting buyer demand. We’re already seeing strong demand in early 2026. The few homes on the market so far this year have attracted intense attention.

If you’ve been thinking about a move, now may be an ideal time to start planning.