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

  • 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.

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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 Realtor.com, 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.