About two months ago, I wrote a blog saying the Berkeley/Oakland real estate market had started off with a bang. Well, the bang has become an explosion! Nearly everything coming on the market is now getting multiple offers ... and going over asking price.
Some points in fact: Properties in Oakland that have sold in the last month are selling on average for 2.4% over asking. In Berkeley, it’s crazy. Properties in Berkeley are selling on average for 12% over asking!
Not only that, but the average sale price for this last month is way above what we had in April: In Oakland, the average sale price for the last month was $462,404 versus April’s $312,710. In Berkeley, the average sale price is now $749,025 versus $635,066. (This is a relatively small time period, yet the direction is definitely up.)
The reason is twofold: Not that many properties have come on the market this spring. And tons of Buyers who have been waiting for years have now jumped off the sidelines and are ready to buy. So there are fewer houses than there are Buyers. This is likely due to the even lower interest rates, which are now around 3.8%!
So if you’re a Buyer, what should you do? You may want to follow the advice of Today’s Show real estate guru Barbara Corcoran: “Get your hands on a house NOW before it runs away from you.” Rather than wait for prices to die down, she says, “Adjust your expectations about what you can buy. Otherwise, you’ll just be chasing prices as they go up. And it’s going to get worse before it gets better.”
So put your head down and get ready to play the bid game. You’re not going to avoid it. And as for Sellers. After 5 years, NOW IS YOUR TIME.
For a consultation about how to be competitive ... and win... in this market, give me a call: 510-847-2409.
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