East Bay Real Estate Newsletter

September 2008, Guidelines for Buying in Today’s Market

The news about real estate these days seems perpetually gloomy.  And it doeesn’t seem to be getting any better.  But here in the East Bay hills, as well as many other neighborhoods, it doesn’t look that bad.  Here, houses are selling.  About 50% of the sales on our board have multiple offers.  And we are seeing lots of buyers at open houses.  So why the disconnect?  The across the board number reported in the media don’t reflect the reality of markets in individual areas and neighborhoods. 

No one knows how long this downturn will last.  But if you want to buy, you want to find the most stable neighborhood you can, to minimize your risk.  Here are five things to look for:

1.  Does the supply of homes in a neighborhood outstrip the demand?  Some areas like Phoenix and Sacramento have been on a building binge.  Other simply have more sellers than buyers.  That leaves a lot of houses on the market that don’t sell.  When that happens prices do down and it can take some time before the oversupply is absorbed. 

2.  Look for neighborhoods with good schools, even if you don’t have children.  Families with children are a large part of the home buying market.  And, of course, they want good schools.  For API rankings of California schools go to

3.  Many buyers today forsake size for the convenience of being close to grocery stores, shops, and the cultural activities of a city, so look for areas where urban amenities are available.

4.  Avoid neighborhoods with a lot of foreclosures.  Banks, who own foreclosed homes, usually just want to get rid of them for whatever price they can get.  This undercuts prices throughout the neighborhood.  With a lot of foreclosed homes in a neighborhood prices may stay depressed for awhile.

5.  Location, location, location.  Don’t forget that home buying is a street-by-street exercise, particularly in a weak market.  Some areas and even blocks are simply considered more desirable than others.

[Note: Sales figures below include third quarter sales in all of Piedmont, north Oakland zip codes 94602, 94609, 94610, 94611, 94618, 94619 and 94705 and in Berkeley above San Pablo Avenue.]

Quarterly Report


Please click on a thumbnail below to view a larger image of that graphic.


Sales Volume <$500K
Sales Volume $500K - $1M
Sales Volume $1M - $2M
Sales Volume $2M+
Total Sales Volume
Median Home Price