These sales show 2022 was an odd year for East Bay real estate – SFGATE

2021 was a record-breaking year for East Bay real estate. Berkeley and Oakland both hit all-time high median sales prices of $1.6 million and $1.1 million, respectively, jumping more than 13% from 2020. In the first half of 2022, things looked similarly rosy for East Bay sellers. At the end of April, “Red Oak properties received an average of six offers each, the highest we’ve seen in over a year,” said real estate agent Simone Koga. “Offers came in at an average of 27% over list price, the highest we’ve ever recorded. And 21% of homes received offers of at least $500,000 over asking, 15 percentage points higher than the same time last year.”

By May, however, the market had shifted. Even perennially popular areas like Piedmont and Berkeley felt the shift as overbidding cooled significantly.

The East Bay buyers are still there, but they’re pickier

But the fact that people were not as willing, or able, to overbid on a home doesn’t mean there weren’t buyers out there eager to purchase.

“The perfect 10 houses still sold very well with multiple offers and often in double digits percentages over the list price,” real estate agent Caitlin Crawford of the Grubb Company told SFGATE. “Houses with inherent flaws — located on busy streets, funky layouts, no off-street parking and/or in need of repairs — are taking longer to sell, need price reductions. And some are simply not selling. Buyers became much more discerning in their home search and how they are structuring offers after years of being beaten up by local market trends.”

The East Bay’s continued high demand could in part reflect San Francisco’s newsworthy emigration trend in 2022: An American Housing Survey released in October found more San Franciscans planned to leave their city than any other city in the U.S. But most don’t go too far. Crawford, who often works with buyers moving from San Francisco to the East Bay, said that “Oakland, Berkeley, Alameda and Piedmont were the cities my clients most moved to.” 

Herman Chan, of Golden Gate Sotheby’s International, said Oakland and Berkeley have always been extremely popular with SF transplants, but that “since the pandemic, cities like Piedmont and Alameda, with their excellent schools and better safety statistics, have exploded.”

The top home sales in four of 2022’s most in-demand East Bay markets give us more insight into the area’s real estate year.

Piedmont: 456 Wildwood Ave.

This Tudor mansion built in 1918 is palatial at almost 10,000 square feet, with old world herringbone floors, a spiral staircase, leaded glass French doors and a wine cellar. There’s also an oversized primary suite on the 0.66-acre property, plus a three-car garage, guest quarters on the second level, a greenhouse, lawns, patios and a pool.

Despite its obvious grandeur, this luxurious abode did not sell for its asking price of $13 million, mirroring the general downturn in demand for high-end homes experienced in San Francisco. Forty-four days after listing, this home sold for $12 million.

The luxury market can act differently from the more affordable market, and Crawford pointed out that these homes don’t represent the overall picture in the East Bay in 2022, when some homes did in fact fetch over-asking prices.

“The instances where we were seeing things sell 40, 50, even 60% over asking price were generally in the high $900,000 to low $2 million range,” Crawford said.

Berkeley: 22 Roble Road 

A classic Spanish-style home, this abode is on nearly a full acre in the highly desirable Claremont neighborhood of Berkeley. In its 8,615-square-foot interior are four bedrooms and seven and a half bathrooms. The tile, arched windows and iron work we expect from Spanish design are all preserved, and the exterior with its classic courtyard setting offers a level lawn, gardens and patio. 

According to its sale records, the property seems to be a victim of the changing market. Records show it listed for $12 million early in 2021, dropping its price twice that year (the last recorded price being $10 million) before being pulled from the market. This year, it was listed briefly on the MLS at $8.9 million before selling off market for $8.5 million.  

Oakland: 6133 Estates 

This estate-like property, though built in the 1930s, has been remodeled for modern living and consists of six bedrooms and five bathrooms set upon a hill overlooking a panoramic view of the San Francisco Bay. There are three separate office spaces, a rec room and wine cellar. Also on the property is a separate one-bedroom, one-bathroom cottage of just under 600 square feet. These buildings join a pool, gardens, lawn and outdoor living spaces on 0.61 acres.

This home spent just 12 days on the market. After listing for $5.3 million, it sold for $5.5 million and is the only home on this top sales list that enjoyed an over-asking final bid price.

Alameda: 2961 Southwood Drive 

Like the top seller in Berkeley, this property sold off market in May for $3.5 million. 2961 Southwood Drive is a 2,904-square-foot house on a 5,715-square-foot lot with three bedrooms and two bathrooms. There are two stories and an unfinished basement. Property records make us wish for a time machine: Before its 2022 sale, it last sold in 1979 for $106,000. 

What’s ahead in 2023?

“We will continue to transition into a more balanced market that we experienced in the second half of 2022, in which buyers have a seat at the negotiation table,” Crawford said. 

That said, sellers still have plenty to celebrate. “The majority of sellers who have owned for at least three years will still have made money on their investment if they choose to sell in 2023,” she said.