According to the Trulia Berkeley market trend report, median home sales have seen a price increase of $182,500 (17%) over the past year. The average price per square foot for this same period rose to $782, up from $729 a year ago. Oakland market trends indicate an increase of $71,000 (11%) in median home sales over the past year. The average price per square foot for this same period rose to $555, up from $502.  

Real time real estate data company, Altos Research shows that the median price for a single family home this week in Oakland  is $685,490 and $599,000 for condos. Days on the market is about 45 for single family homes and 42 for condos. Berkeley’s median home price is $1,075,000 and $824,000 for condos. Days on market has held steady at or around 33 for single family homes and 14 for condos. Inventory in both markets remain low with a steady demand. For the most part, homes are leaving the market as quickly as new inventory becomes available. According to Altos, the Berkeley market has started cooling and prices have been flat for several weeks.

Altos Research: Oakland Median List Price October 2017 (Click to enlarge)

Altos Research: Oakland Days On Market October 2017 (Click to enlarge)

Altos Research: Berkeley Median List Price October 2017 (Click to enlarge)

Altos Research: Berkeley Days On Market October 2017 (Click to enlarge)

Keep in mind that the median home price for the entire city does not always reflect accurately on homes in a wide variety of neighborhoods in the area due to the unique style and character of the houses.

Trend Spotting

Tracy Sichterman, Broker, Berkeley Realty says, “One thing we are telling sellers is that the new proposed tax bill and the prospect of rising interest rates make predictions for next year’s market tenuous at best.” Sichterman advises sellers that if they need to sell in 2018, now may be the time to act. “If you want to gamble on waiting for the spring market, it’s best if your need to sell isn’t immediate.”

Sichterman says that she and her team members have the same “act now” advice for buyers (usually timing that is good for sellers is not good for buyers), especially if they are financing a purchase. Any market softening that might happen next spring, could be offset by the impact of increased interest rates on mortgage affordability. Numerous sources predict a rate hike next month and again in mid-2018.

Sichterman pointed out that there are 14 single family homes on the market today in Oakland and Berkeley that have received a recent price change. Five of those have increased their price!  This is an unusual pricing strategy for homes that have stayed on the market past the two week sweet spot. “This sales maneuver usually means that the original list price was meant to lure multiple offers and the seller actually had a higher price in mind. The new higher price often reflects what the seller would now be willing to take,” Sichterman shares. This most often happens in a cooling market, when sellers have to readjust (sometimes publicly) their expectations on the sales price of their home.

If you would like to learn more about a specific market that you are looking at or would like to discuss a selling strategy, please contact Berkeley Hills Realty today!