Berkeley Homes - Sales Prices


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Berkeley Real Estate Price Trends
2014 Berkeley Sales Research

Price Trends
I researched Berkeley Sales Prices over a 15 year period.

Berkeley homes prices are now greater than 2006 values, and up significantly from the 2011 prices.

The trend shows Berkeley home prices will likely increase in 2015, albeit probably at a slower rate than we saw in the 2012-2013-2014 period.

2015 looks like it will be a good year for selling ... particularly if you're planning to downsize or relocate as so many of our other sellers have done.

Berkeley Fine & Luxury Homes
Over the past 15 years, Berkeley fine and luxury homes (those in the highest 5%) have sold for about twice that of Berkeley's median price.

What's interesting is that the difference between the median price and top 5% increased in 2014.

High Net Worth Individual (HNWI) value both time and money, and time is the more precious commodity. Thus, since they have the resources, they're able and willing to pay a higher price for a home because they're limited in time.

The Next Step
Thinking of selling? Call us at 510-526-6668 or email serkes@berkeleyhomes.com. We'll prepare detailed market research and analysis customized for your home, and discuss the options best for you!

Ira & Carol Serkes, Certified Residential Specialists

Over 1/3 of the homes which sold in Berkeley in 2014 had 3 bedrooms, so I used the 3 bedroom home as the "benchmark".

Bedrooms	2014 Berkeley Sales
2	20%
3	38%
4	27%
5	10%
Other	5%

Data from East Bay Regional MLS, which reflects sales made through the Multiple Listing Service (MLS). This gives a representative sampling of Berkeley real estate sales; private and off-market sales aren't included in this report.

Real estate prices are cyclical, so I researched sales prices over a 15 year period - 2000 through 2014. Seeing how prices behaved in the past helps us determine what they'll do in the future.

I used the median price (half the homes sold for more, half for less) as the indicator.

How did 3 bedroom home prices in Albany and Kensington compare to prices in Berkeley? It looks like 3 bedroom prices track well - in most cases, the median Berkeley and Kensington (black bar and medium gray bar, respectively) home sales price is about the same; Albany median sales prices are generally lower.

This focuses on Berkeley 3 bedroom sales price trends over 15 years.

The 2014 median sales price is up 13% from the 2006 peak, and up 40% from the 2011 low point!

What does 2015 bring? The trend curve looks like it is approaching another relative peak, so 2015 will probably see price growth ... and home prices stabilizing.

How did the 2 and 4 bedroom home price trend compare to 3 bedrooms?

They track quite well - 2, 3 & 4 bedroom median prices followed the same pattern over the past 15 years!

Many of our clients have sold or bought fine homes ... those priced at the 95% percentile ... or the highest 5% of sales prices.

This shows how fine home prices compared the median price for all of Berkeley.

In general, Berkeley fine and luxury homes sell for about twice that of Berkeley's median price.

Note the green bar on the right - it shows that the difference between the median and 95% increased in 2014.

High Net Worth Individual (HNWI) value both time and money, and time is the more precious commodity. Thus, since they have the resources, a HNWI is able and willing to pay a higher price for a home because they're limited in time.

I used the 95% percentile rather than the highest sales price because it gives a trend rather than showing the price for a unique home.

How are 2 bedroom home prices distributed?

In a classical bell curve!

The vertical axis is the number of homes sold within each $100,00 price range.

Berkeley 3 bedroom homes show the same pattern, and they're distributed over a broader price range.

Here's the graph for 4 bedroom homes

And the distribution of 2, 3 & 4 bedroom homes

This shows Berkeley sales prices as a function of the home's size in square feet.

The median Berkeley home is about 1,700 square feet

Only 11% of the homes which sold in 2014 were 3,000 square feet or larger.

The median new home built in the United States was 2,306 square feet in 2012; only 27% of Berkeley homes sold last year were that size or larger.

Thus, buyers relocating to Berkeley often have both sticker and size shock!

Reference: "2,306 According to the latest new single-family house size data from the US Census Bureau, the median house size rose to an all-time record of 2306 square feet in 2012" newgeography.com

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