Berkeley Real Estate Market Report

What’s Next for the Market?

The Berkeley housing market is expected to show moderate stability and gradual improvement through 2026, reflecting broader statewide trends. Berkeley’s single-family home prices remain high, despite a year-over-year decline of about 2.4%. Typical home values hovered around approximately $1.4 million, with some year-over-year softness in median sale prices. Demand remains resilient due to limited supply and strong buyer interest in our vibrant community. Short market times and competitive offers are still prevalent in the single-family market, but list prices have started lower, and overbids were more modest as sellers reset expectations. AI is the new market influencer to watch! The AI boom could be a boon to the East Bay housing market, primarily by driving demand with an influx of affluent, all-cash buyers.

At the state level, the California housing market forecast projects a mild rebound in 2026, with existing home sales expected to rise modestly and median prices climbing at a slower but positive pace, underpinned by slightly lower mortgage rates and modest gains in affordability. These broader trends suggest that Berkeley’s market may see price stabilization or modest appreciation rather than sharp changes. Local policy changes, such as zoning reforms allowing more “middle housing,” could increase housing supply over time, potentially easing upward pressure on prices.

Overall, Berkeley is likely to remain a competitive, high-value market in 2026, with steady demand from the tech sector and those drawn by the city’s amenities and proximity to the Bay Area’s employment centers. Affordability challenges will persist, and price growth may be tempered compared with past boom years.