Sunday, January 3, 2010

Buying or Selling a Home in Berkeley: Market Update January 2, 2010

If you are buying or selling a home in Berkeley you want to be educated as to what is going on in the market place.  In Berkeley, as in all of the east bay there are many micro markets for buying or selling a home.  The following charts sum up in a visual way what is going on in the city as a whole.  For specific micro markets, (zip codes and MLS areas) it would be more expedient for you to pop me an email (  I do not have the time to post every market.  There is a high degree of variability in the Berkeley market so  before buying or selling a home in Berkeley please check with me or with another realtor of your choice.

The first two charts really sum it all up.  There is a dirth of inventory right now. And, contrary to what you read, there are plenty of buyers. When you think about it the market place is really quite screwy.  There are hardly any properties for sale in parts of Berkeley, Albany, Oakland, etc, and then in some areas it seems like every house is for sale.

This chart shows the how many months it will take to sell every house that is on the market in Berkeley in December 09. Conventional wisdom says that through 7 months it remains a sellers market. the chart below shows that in December we had about a 5 week supply. What we have is a huge reduction in the number of homes available for buyers. If a greater number of homes do not become availabe in the months ahead we should see an increase in prices.


The next chart shows the actual umber of houses on the Market in Berkeley for the past 13 months (December 09-Dec.09), another indication that supply is very low.

The following chart shows what the average selling price vs the average for sale price was for the past year.  Keep in mind that we are seeing areas where the sellling price is quite higher than the for sale price. The market is very mixed and care needs to be taken when pricing a home.


What does all this mean?  Basically that if you are planning on buying or selling a home in Berkeley this year you should pay attention to these market dynamics.  There are currently at least a half a dozen markets in Berkeley and you need to know which one you are in.  Please call or email me if I can be of further assistance.

And please visit my website for more in depth information about the East Bay Market, property searches, open homes, and reports:

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