We’re not in a runaway market anymore—but that doesn’t mean we’re in a downturn. Across Berkeley and the inner East Bay, the housing market is finding its footing. Higher mortgage rates, more listings, and increasingly selective buyers are all reshaping how homes are bought and sold. It’s still a relatively strong market, but one that rewards preparation, realism, and local insight.
As Nadia Evangelou of the National Association of Realtors put it, we’re at a turning point. If you’re thinking about selling, buying, or just keeping an eye on the market, it helps to know what’s changing—and how to position yourself for success.
Sales Are Slower—But That Doesn’t Mean Stalled
Buyers are still active, but they’re more cautious and deliberate. Overall sales activity remains below pre-pandemic levels, even as inventory continues to rise. Affordability is the main issue—not just because of home prices, but because borrowing is more expensive.
As Lawrence Yun, Chief Economist for NAR, recently said, “Home sales have been at 75% of normal or pre-pandemic activity for the past three years, even with seven million jobs added to the economy.” In other words, the demand is there, but it’s not fully showing up yet.
For buyers, this means more options and less competition than we’ve seen in years. For sellers, it means pricing and presentation are more important than ever. Even if you’re not ready to list, I can help you think through a longer-term plan so you’re prepared when the timing is right.
Mortgage Rates Are the New Normal (For Now)
Rates have hovered close to 7% for much of this year, and while that’s high compared to the pandemic lows, they’ve become part of the landscape. Many buyers aren’t waiting for the perfect rate—they’re looking for ways to make today’s numbers work.
That might mean negotiating a seller-paid 2-1 buydown, asking for closing cost credits, or planning to refinance later. On the listing side, I work with sellers to evaluate whether offering those kinds of concessions makes sense. Sometimes a small upfront incentive can widen your pool of qualified buyers without reducing the sale price.
Inventory Is Rising, and Buyer Expectations Are Too
In Berkeley and neighboring markets, inventory has opened up—but it’s not just about supply. Buyers today are more educated, more risk-averse, and more focused on the total cost of ownership.
That’s why I’m spending more time helping sellers navigate local requirements like BESO and the EMBER ordinance. These aren’t just resale requirements—they impact insurability, cost of ownership, and buyer confidence.
More buyers are walking away from homes with knob-and-tube wiring, outdated electrical panels, or wildfire risks that haven’t been addressed. I help sellers get ahead of these red flags so they’re not scrambling during escrow—or forced to discount when the right buyer shows up.
That might mean replacing old electrical, documenting completed upgrades, or clearing vegetation in anticipation of EMBER’s defensible space standards (which go into effect citywide in 2026). Some clients are even seeing insurance discounts of up to 25% for completing Zone 0 work—making their homes both safer and more marketable.
Prices Are Holding—But You Can’t Overreach
Prices in Berkeley and the inner East Bay are mostly holding steady. Some segments—particularly homes with condition or location challenges—have softened a bit. But there’s no crash happening. It’s more of a return to normal after an unusually aggressive run-up.
According to Newsweek, more than half of U.S. states saw modest price declines in early 2025, but the East Bay has been relatively stable thanks to persistent demand and limited housing stock.
Still, today’s buyers are value-driven. Overpricing by even 5% can stall momentum and lead to unnecessary price reductions down the line. I work closely with my clients to position listings competitively—pricing realistically from day one while making sure the home stands out on condition, presentation, and local compliance.
Plan Ahead—Even If You’re Not Selling Anytime Soon
One of the best things you can do as a homeowner right now is start planning—even if you’re a few years out from a sale. A lot of improvements take time and coordination. Whether it’s a BESO audit, clearing flammable foliage, or installing a heat pump, I can help you prioritize work that will both improve your day-to-day comfort and pay off at resale.
I’ve helped clients:
- Replace knob-and-tube wiring to improve safety and qualify for better insurance
- Clear vegetation and prepare for EMBER compliance before it’s mandatory
- Complete BESO upgrades like insulation, duct sealing, and heat pump installation
- Organize documentation of past improvements to streamline disclosures
Even if you just want a second opinion on whether a project is worth doing, I’m happy to be a sounding board.
Let’s Talk About What Comes Next
Real estate isn’t just about national headlines—it’s deeply local. From understanding Berkeley’s new fire code requirements to knowing what buyers expect on a Thousand Oaks listing versus one in the Elmwood district, I bring the insight that only comes from working (and living) in this market every day.
Whether you’re thinking about buying, selling, or just want to explore your options, let’s talk. I’ll help you make a plan that fits your goals, your timeline, and your property.
