AgentMarkets & Economy

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. But coming up on their heels is a grouping of further-out Bay Area cities, along with Sacramento submarkets that 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. Being in the top 15 suggests these markets received roughly 1.4 times to 2.9 times the number of views per-listing compared with the national average. Additionally, homes in these markets are said to sell 29 days to 51 days quicker than the rest of the U.S., with days on market dropping by a combined average of 15 percent year-over-year. In short, it appears more buyers are purchasing homes further outside of San Francisco and the East Bay, with affordability likely the main attractor. While San Francisco and San Jose experienced year-over-year declines in...