As we come to the end of the rollercoaster ride that was the 2022 real estate market, I can think only of one house: 1271 Spruce Street in Berkeley. It captured the craziness perfectly.                       

This house was all the talk among real estate agents. Did you see Spruce? What do you think it will sell for? Everyone had a client who wanted to see it. I had clients who wanted to see it.

I arrived early for a showing, and another agent was already there. By the time we left, there was a crowd waiting. As we stood in the driveway, making plans to talk later that day, we were interrupted by a young couple who asked if I knew their agent. They had just flown in from LA after seeing the house online. They had been unable to get a hold of their agent to tell her they were coming, and they were hoping I could help them get in touch with her.

Those people did not get the house. My clients could not compete. Most buyers couldn’t.

1271 Spruce Street sold for all cash in 8 days for $4,035,000 — 225% over the list price.

This house provoked drama. A deliberately low asking price created a buying frenzy. Desperate buyers are jumping on an airplane. Others put in an offer sight unseen. Buyers flush with cash are willing to overlook flaws and go where no one else could or would.

The real estate market has slowed since then, with demand tapering sharply in the second half of 2022. Rising interest rates cooled the market fast.

Buyers still have it tough — rates have increased faster than prices have decreased — but the particular kind of craziness reflected in the story of 1271 Spruce Street seems behind us.