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View the entire 2012 Berkeley 2012 Real Estate Market Report at http://www.berkeleyhomes.com/homes/research/research.html
The Berkeley real estate market is robust and home prices are rising again.
This graphs the median home price (half sold for more, half for less) over the past 6 years. About a year ago the data indicated that prices would stabilize and perhaps rise in 2012 … And that’s what happened.
With strong buyer demand, low interest rates and very low inventory, 2013 is off a robust start – many homes receiving multiple offers and selling for significantly above asking price.
This shows the sales price/original list price ratio for Berkeley homes. The ratio is plotted against days on the market … the day that seller and buyer came to agreement.
The cluster of sales shows that properly priced homes sell quickly and most for for more than the asking price.
In 2012, 64% of Berkeley purchase agreements were ratified within 16 days of coming on the market, and 88% of those houses sold for asking price or more.
Why 16 days?
Homes typically come on the market early in the week and have a Thursday real estate broker tour and one or two Sunday Open Houses. The seller reviews offers the following week and comes to agreement with a buyer within a day after offers … And that’s within 16 days from coming on the market.
The cluster of sales above the 100% line indicates multiple offers – Buyers bid up the price of a home when they’re competing against other buyers for the house.
We have a 30 day “price tipping point”
Once a house has been listed for 30 days or more, and hasn’t yet sold, buyers know that the list price is probably too high. 88% of those homes sold for less than the original asking price. They likely sold for lower prices than they would have if the seller had priced them correctly in the first place. Sellers are in a stronger position when they have several buyers vying for their home; after 30 days they usually only have one buyer to negotiate with.
Here’s how the the sales were distributed for 2 to 5 bedroom homes in $100K price increments. 95% of the homes sold for $1.5M or less; I’ll do another report to discuss Berkeley’s fine and luxury homes.
Much of Berkeley was built up by the 1930s, so the homes tend to be smaller – 73% of the single family homes which sold in 2012 were 2 or 3 bedrooms; only 8% of the homes has 5 or more bedrooms.
I’ve created a series of maps to show where the 2012 Berkeley homes sales were located.
The maps let you zoom out for an overview (pie chart view) or zoom in to neighborhood or street level. Filter the results by clicking on a colored marker in the dark gray band at the bottom, click on a map marker for details of the sale.
View the interactive maps grouped by Sales Price, Bedrooms, Square Footage, Year Built and Sales/Original Price Ratio at
http://www.berkeleyhomes.com/homes/research/research.html
Ira Serkes
©2013 Bay East. ©2013 CCAR. ©2013 EBRD. All rights reserved. Information deemed reliable but not guaranteed. This information is provided from three separate sources: Bay East, CCAR and EBRD. The listings presented here may or may not be listed by the Broker/Agent operating this website. Information last updated on 5/22/13 11:54 PM PDT.