Real Estate Prices Soaring; Berkeley Home Sells For $1.5 Million Over Asking Price – CBS San Francisco

BERKELEY (CBS SF) — Even in the San Francisco Bay Area’s rebounding real estate market, the recent sale of a four-bedroom Berkeley home was raising eyebrows.

The house, located on a desirable corner lot in the Claremont neighborhood, was initially priced at $2.75 million but sold for $4.25 million — a whopping $1.5 million over its listing.

READ MORE: Supply Chain Issues: ‘There Really Are Problems Everywhere,’ Even For Small Companies

It is a sign of the times, according to real estate agents across the Bay Area. Since the market awoke from its COVID slumber, prices of homes have soared and bidding wars have escalated from Marin County to the Silicon Valley.

“In the East Bay, there’s simply more demand than houses available, so I’m not surprised that we got so many offers,” said Compass Realty listing agent Julie Nachtwehy, who listed the Berkeley home.

“The home has lots of character, and the stunning interior remodeling was over the top,” she added. “The owners are selling because they want to downsize, now that the youngest son left for college. They’re ready to travel and do other fun things.”

READ MORE: Structural Expert: Repair Work On San Francisco’s Leaning Millennium Tower Should Stop

The owners bought the home, built in 1911, for $1.58 million in 2016. They only had it listed for 10 days during which a heated bidding war erupted among potential buyers.

According to CoreLogic, a real estate data tracking firm, the median price for an existing single-family home in the Bay Area rose 12.8% in August over last year.

Prices rose by double-digits in Alameda, Santa Clara and Solano counties.

Tina Hand, president of Bay East Association of Realtors, told the San Jose Mercury News that the market has been particularly strong for single-family homes with big yards.

MORE NEWS: Fourth Stimulus Check: Will You See Another Relief Payment?

“People still want that bigger home with the large lot for kids to play in,” she said. “I see that continuing through next year.”