Berkeley’s detached single-family home market remained highly competitive in May, even as home prices moderated from last year’s peak. Buyer demand stayed strong, inventory remained exceptionally low, and well-priced homes continued to attract multiple offers. While the median sale price declined year over year, the broader market data suggests Berkeley remains one of the East Bay’s most competitive housing markets.
Market Snapshot
Home Prices
- Median sale price: $1,637,500 (-9.7% year over year)
- Average sale price: $1,814,294 (-6.7%)
- Average sold price per square foot: $981
Market Activity
- Homes sold: 74 (+8.8% year over year)
- Pending sales: 52
- Active listings: 62
- Months of inventory: 0.9
Market Pace
- Average days on market: 24
- Average sale-to-list price: 130%
Prices Softened, but Competition Remained Strong
The median sale price declined nearly 10% compared to May 2025, but that doesn’t necessarily signal a weakening market. Sales activity actually increased, with 74 homes sold compared to 68 during the same month last year.
It’s also worth remembering that median sale prices can fluctuate depending on the types of homes sold each month. A shift toward smaller homes or fewer luxury sales can lower the median without reflecting a broader decline in property values.
Inventory Continues to Favor Sellers
Berkeley ended May with just 0.9 months of inventory, well below the four to six months generally considered a balanced market. Limited inventory continues to create competition among buyers, particularly for homes that are well-priced and move-in ready.
Although active listings increased slightly from earlier this year, supply remains constrained, helping support home values across much of the city.
Buyers Are Still Paying Above Asking
One of the strongest indicators of market demand is Berkeley’s 130% average sale-to-list price ratio. While not every property sold 30% above asking, it reflects a market where strategic pricing and multiple-offer situations remain common.
Homes also averaged 24 days on market, indicating that desirable listings continue to move quickly despite changing market conditions.
Looking Ahead
As the summer market continues, several trends will be worth watching:
- Whether inventory begins to increase enough to ease competition.
- Whether median home prices stabilize after this month’s year-over-year decline.
- Whether buyers continue bidding aggressively as mortgage rates and affordability influence purchasing decisions.
For now, Berkeley remains a market defined by limited supply, steady buyer demand, and strong competition. While prices moderated compared to last year, the broader market continues to favor well-prepared sellers and buyers who are ready to act when the right home becomes available.
