After a dead market for the past 5 years, the market for million dollar homes in the East Bay is showing signs of life after death. And a healthy life at that.
Looking at Berkeley for instance - In the first three months of this year, the average home price over $1 million was $1.308M, with an average price/square foot of $438. Fast forward to the past three months and the average sold price in Berkeley has risen to $1.372, or $504/sf. On a price/sf basis, that translates to 15% above the prices of the first quarter and actually 13% above asking prices. That trend seems to be establishing the average asking price for luxury homes in the East Bay now standing at $1.64M. As for what that buys in Berkeley, typically it’s a classical, updated older home of 3,000 sf with a Bay view.
Oakland is following in the tracks of its little sister. The average sold price for $1M+ homes in Oakland for the first three months was $1.393M, with an average $/sf of $385. For the last three months, the average price in Oakland has declined a little but the $/sf is up to $431. This indicates smaller homes selling in the million dollar range. This is a 12% increase from the first of the year and 4 % above the asking price. In Oakland, the average $1.3M home is larger (usually over 3,000 sf), newer (post 1991) and has a partial bay view for that price.
The good news for this part of the market is that prices are likely to go up as more homes priced below $1M get bid up as in, “a rising tide lifts all boats.”
This home at 2850 Buena Vista in the Berkeley Hills has panoramic views from every room and is over 4,000 sf on a half acre lot. It is priced at $1.895M.
For a consultation on luxury homes in the East Bay, feel free to call me in my office: 510-847-2409.