Here’s The Scoop! 2024 Q4 Inner East Bay Real Estate Review

 As we step into 2025, the U.S. real estate market continues to navigate ongoing challenges and gradual appreciation, with sales prices increasing by an average of 3-5%, depending on the region. However, here in the Bay Area—particularly in the Inner East Bay*—we experienced nominal shifts as 2024 came to a close, with prices declining by an average of 2% compared to the same period in 2023. A combination of factors contributed to this decline, including persistently high mortgage interest rates, limited inventory, and regional economic uncertainty. Despite post-pandemic headwinds, the East Bay remained relatively stable overall, especially compared to other high-priced coastal markets nationwide. Single-Family Homes The total number of single-family homes sold in the Inner East Bay during Q4 2024 increased by 13%, though prices varied across different neighborhoods. The median sale price for homes in the region dipped slightly to $1M, with homes priced at $1.5M and below selling closer to their asking prices. The most significant shift in the 2024 market was the increase in the time it took for homes to sell, which jumped 36% in Q4 compared to the previous year. Oakland led the trend, with homes taking an average of 39 days to sell in the fourth quarter, though it still averaged a list-to-sale price of 7% over asking by year-end. As a result, we also saw a higher number of cancellations and expirations, which rose by 22% from 2023 to 2024. A striking 34% of single-family homes were taken off the market in Q4, and we anticipate many of these properties returning to the market as early as spring 2025. Inventory Inventory constraints remained a defining feature of the market. The Inner East Bay ended Q4 2024 with just two months of supply for homes priced below $1M and four months for properties above this threshold, despite a 12% year-over-year increase in single-family homes sold. These numbers highlight a continued supply shortage, particularly for entry-level buyers who are facing the dual challenge of limited inventory and persistently high mortgage rates. Which cities performed best? Berkeley: Berkeley maintained its value due to consistent demand, a limited supply of desirable homes, and its proximity to the University of California, Berkeley. Median prices rose by 7% to $1,500,000 in Q4, with premium neighborhoods like Berkeley Hills and Central Berkeley seeing average sale prices at 24% and 22% over asking, respectively.  El Cerrito: A standout performer with a 15% year-over-year price increase, reaching a median of $1,300,000. Over the past decade, the median price of single-family homes in El Cerrito has surged by an impressive 90%.  Richmond: Recorded a 12% appreciation, with a median price of $699,000 in Q4, signaling growing interest from buyers impacted by high mortgage rates and seeking more affordable options.   Looking Ahead Buyers and sellers should anticipate continued competition in desirable neighborhoods and sustained interest in income-producing properties. The alignment of buyer expectations with seller pricing strategies will likely determine the pace of future transactions, but most industry experts predict some level of market growth in 2025. If you're considering selling or purchasing a home in 2025, now is the perfect time to discuss your next steps. Reach out.  *Alameda, Albany, Berkeley, El Cerrito, El Sobrante, Emeryville, Hercules, Kensington, Oakland, Piedmont, Pinole, Richmond, San Leandro and San Pablo. Data is sourced from the Multiple Listing Service (MLS)