Bay Area submarkets some of the nation's hottest for housing

Affordability in these markets appears to be driving sales activity
  • The five hot Northern California submarkets all have median home prices below $500,000.
  • Eight of the nation's 15 hottest housing markets are in Northern California.
  • Housing costs in San Francisco, San Jose and the East Bay seem to be pushing buyers further out.

San Francisco and San Jose are considered the hottest housing markets in the nation, which is really nothing new. Of more significance, a grouping of further-out Bay Area cities, along with Sacramento submarkets are being labeled as top housing markets. According to, the Vallejo-Fairfield, Santa Rosa, Yuba City, Stockton and Modesto markets all ranked in the top 15 nationally during December. San Francisco, San Jose and Vallejo were ranked Nos. 1 through 3.