Berkeley, CA 94705 Real Estate Market Report

ZIP Code: 94705
Report Date: April 2026
Market Temperature: HOT
Scope: Single-Family Residential (SFR) listings and comps only

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Executive Overview

As of April 2026, the housing market in Berkeley, CA is characterized by a median sold price of $1,835,000, reflecting a competitive environment despite some overall price declines. The neighborhood has decreased 8% since 2022, indicating a shift in market dynamics. Although the median listing price stands at $2,495,000, the gap between listing and sold prices suggests that seller expectations may not fully align with current market realities.

Market activity remains robust, with homes selling quickly, often above asking price, which points to a hot market temperature. However, the median days on market is 339, indicating slower sales velocity and potential pricing friction. Elevated inventory levels relative to sales activity may suggest a need for sellers to adjust expectations to facilitate transactions in this mixed market environment.

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Market Overview

This analysis is based on a sample of properties from this ZIP code (up to 200 sold properties and up to 100 active properties). The median prices below are calculated from all available properties in the sample, while trend analysis uses properties from the selected analysis window.

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Market Metrics

Note: The property counts shown above represent only the properties analyzed in this report sample, not the total inventory for this ZIP code. Median prices are calculated from all available properties in the sample, while trend analysis uses properties from the selected analysis window.

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Rental Market

Note: The relationship between property values and rental rates reflects different market dynamics. Higher-priced properties may have lower rental yields due to factors such as luxury market positioning, owner-occupancy preferences, or long-term appreciation strategies rather than immediate rental income maximization.

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Property Taxes

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Liquidity & Velocity

Note: A Sale-to-List Ratio near 100% can occur when properties sell at or near their final listing price after price adjustments during the listing period, even when initial listing prices differ significantly from sale prices.

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Market Trends & Context

Understanding Market Temperature

A Hot market indicates strong buyer demand with limited inventory, typically characterized by rising prices, quick sales (low days on market), and inventory levels below historical averages.

Current Mortgage Rate Context

Market-level mortgage rate comparison for this area:

Current 30-year fixed mortgage rates in Berkeley, CA are approximately 6.478% compared to an average of 6.26% in early 2026.

Note: Interest rate comparisons provide market context. The existing "Interest Rate Pressure" metric above shows the qualitative market impact.

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Key Findings

1. The median sold price of $1,835,000 indicates strong transaction activity despite a year-over-year decrease of 8%.

2. Homes are selling quickly, often above asking price, reflecting a hot market temperature despite elevated inventory levels.

3. The median days on market of 339 suggests a slower sales velocity, which may indicate pricing challenges for sellers.

4. The median listing price of $2,495,000 shows a significant gap compared to sold prices, highlighting potential pricing friction in the market.

5. With median market rent rising to $3,475, rental demand remains strong, supported by the local economy influenced by academic institutions and the tech sector.

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Notable Properties

The following 8 properties represent notable market examples and recent transactions that illustrate key market dynamics. These are illustrative examples selected for their significance (top sales, market benchmarks, quick sales) and are not the basis for the statistical calculations shown above.