East Bay Market Update - April 2023 | Blog

Calia Homes is pleased to share our monthly newsletter providing data and detailed insight into the Berkeley, Oakland, and Piedmont housing markets.

Feel free to reach out with any questions you may have about the data enclosed or the East Bay housing market.

Kind Regards,

Carrie and Jennifer and Calia Homes Team

510.980.9497 | caliahomes.com

Real Estate and Taxes

Along with spring’s beautiful flowers comes tax season. Let’s delve into a conversation about two types of taxes that are associated with our homes: property taxes and city transfer taxes. We’ll do our best not to create tax-related anxiety or lull you to sleep with our research!

For both Berkeley, Oakland, and Piedmont, property taxes and city transfer taxes (paid by buyers and sellers when a property closes escrow) make up a notable part of each City’s budget.

Property Taxes

According to the California Legislative Analyst’s Office (LAO), “a typical California property tax bill consists of many taxes and charges including the “1 percent rate” (part of the “Ad Valorem Tax” on each bill that goes to the County), voter-approved debt rates, parcel taxes, Mello-Roos taxes, and assessments.”

Our homebuyer clients often ask us “How much should I expect to pay in property taxes each year?” The answer is “it depends.”

For new homeowners, the majority of their property tax bill comes from taxes and charges that are calculated based on their assessed value. However, charges can also be based on the square footage of your home or parcel. Consequently, there is no fixed property tax rate. Taxes vary by house, city, neighborhood, and parcel.

Our new homeowners can usually expect to pay around 1.4 - 1.6 % of their home’s assessed value in the first year.

City Transfer Taxes

Every time a home is sold in Berkeley, Oakland, and Piedmont there is a city transfer tax paid by the buyers and sellers in the transaction (typically split 50% / 50%).

The simplest and least expensive transfer tax is in Piedmont. Their city transfer tax is $13 per 1,000 of the property’s purchase price, or $13,000 per $1 million in home sales. Split between the buyer and the seller this would add $6,500 per million dollars to the purchase price for both parties.

Berkeley and Oakland’s city transfer taxes are more complex. Here are two tables explaining how city transfer taxes work in Berkeley and Oakland.

Just for Fun: Sales Tax Bonus Data

When you buy items for your home, you pay sales tax too. Cities in Alameda County have the highest sales taxes in the state. Los Angeles County comes in a close second. Most CA counties sales tax rates range between 7 - 9%. Here are the sales taxes in Berkeley, Oakland, Piedmont and some of our neighboring cities:

RECENT MARKET ACTIVITY IN BERKELEY & OAKLANDT

RECENT MARKET ACTIVITY IN PIEDMONT

Based on information from the MLS. All data, is obtained from various sources and has not been, and will not be, verified by broker or MLS. All information should be independently reviewed and verified for accuracy. Properties may or may not be listed by the office/agent presenting the information.

Dedicated to clients, culture, and community, Calia Homes is a team of exceptional real estate professionals who work together with the common goal of providing unparalleled client services in a supportive and collaborative environment. Our mission is to create smooth, successful – and even enjoyable – transactions in any market.