Limited inventory was the defining feature of the Berkeley market in the first quarter of 2026.
North Berkeley
The supply of homes for sale was low across Berkeley, but it was especially tight in North Berkeley. There were only 28 homes available during the first three months of the year (Q1), about one-third fewer than at the same time in 2025. With so few homes to choose from, competition between buyers was intense, with more offers than we’ve seen in the last several years.
- Median sold price: $1,600,000
- Down from the end of 2025
- Up 10% year-over-year
- Average sold price per square foot: $1,066
- Up 2% from the previous quarter
- Up 8% from a year ago
- Sold over list price: 88%
- Averaging 40% over asking
There was a wide range in sold price per square foot, even by North Berkeley standards. At the low end, a fixer on Spruce sold for $557 per square foot after sitting on the market without selling in 2025. At the high end, a home on Beverly sold for a whopping $1,955 per square foot. That property sold for a large premium because it was updated, had additional lower-level space that could be developed, and, most importantly, offered the rare combination of SF and Bay views with close proximity to Northbrae (Monterey Market area) shops.
Berkeley Hills
In the Hills, there were only 55 homes available during the first quarter of 2026, fewer than in any quarter of 2025. A total of 23 properties sold.
- Median sold price: $1,599,000
- Up 1% from the end of 2025
- Up 7% year-over-year
- Average sold price per square foot: $820
- Down 3% from the previous quarter
- Down 3% from a year ago
- Sold over list price: 83%
- Averaging 24% over asking
The average sold price per square foot was lower this quarter in part because buyers are sensitive to risks in the high fire zones, and the insurance crisis has made that risk a current cost (with higher insurance premiums) in addition to a concern for the future. It also reflects the fact that a number of fixer properties are included in the statistics.
Of the 23 properties that sold in Q1, 7 sold for less than $700 per square foot. These were mostly fixers, along with some larger properties (which typically sell for less per square foot). At the high end, 5 homes sold for more than $1,000 per square foot. Two properties sold for more than $1,300 per square foot: one was a stylishly redone house plus ADU in the lower hills on Scenic, and the other was a very cool new construction home on Keith. Condition and updating definitely make a huge difference.
Market Context
Interest rates, which were down to about 6% at the beginning of March, have since moved back up into the mid-6% range due to higher oil prices from the war in Iran and elevated inflation concerns. These make near-term rate cuts by the Fed less likely. Even so, demand in Berkeley has remained steady. Buyers with significant resources, including those benefiting from the AI sector, are still active. A strong San Francisco market also continues to support demand here, as buyers look for (somewhat) more affordable options.
Looking Ahead
We’re reaching the point now in Berkeley where updated 3-bedroom/2-bath homes are often selling above $2 million, and sales over $3 million are becoming increasingly more common. Nearly a quarter of all Berkeley sales in Q1 were above $2 million. More inventory typically comes on the market in the second quarter, but demand is also usually highest in the spring. Even with some uncertainty around rates, the underlying supply-demand balance favors sellers of properties that show well and are priced strategically.
