Midway through this year the median price of a home in Berkeley reached its highest level on record, eclipsing $1 million.
Moving forward, one firm predicts prices will remain high in the city, but will increase at a slower pace.
According to a quarterly report from Red Oak Realty, home values in Berkeley will benefit from declining inventory levels and the city’s growing population of high-tech employees, some of whom are heading to the East Bay because of high prices elsewhere in the Bay Area.
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Neighborhoods likely to see continued, but more moderate price increases include North Berkeley, Berkeley Hills and South Berkeley. During the first half of this year, these submarkets contributed the most sales among Berkeley neighborhoods, accounting for 103, 68 and 50 sales, respectively, according to Red Oak.
Entering the second half, the median price of a home in North Berkeley stood at $1.2 million, a 10 percent year-over-year rise. South Berkeley represents another pricey market, having entered the second half with a median price of $1.28 million, which equated to a 7 percent year-over-year rise. If Red Oak’s predictions are accurate, the days of year-over-year, double-digit price appreciation are over for these neighborhoods.
“Sell while prices are high,” Red Oak suggests. “If you think waiting will bring an even higher return, weigh the risks of a potential downturn and play your odds.”
Rumor has it more tech companies like Google may set up shop in Berkeley, as the city is already becoming a hub for bio-tech start ups, likely to cause home prices to boost even more.
