Tech workers come in droves to Silicon Valley, but few can afford to buy homes there.
Recent data shows that prospective homebuyers are migrating south in search of affordability.
Real estate company Redfin produces an annual list of the hottest housing markets in America, based on increases in internet traffic to listings in specific neighborhood. In 2018, nine out of the top 10 hottest hoods are in the San Jose metro area — located in the heart of Silicon Valley.
According to Redfin, San Jose’s ultra-competitive housing market had the lowest supply of housing and the fastest pace of home sales compared to any other Redfin market in December. The median sale price climbed 32% year over year, reaching $1.1 million in December.
San Jose won’t be “affordable” for long. Check out the 10 hottest neighborhoods in America.
10. Rex Manor, San Jose, CA
Median sale price: $1,500,000
Average sale-to-list price ratio: 114.4%
Percent of homes that sold above list price: 83.9%
“Rex Manor has been gaining traction as a desirable neighborhood, where you’ll see many residents riding their bikes to Google, Shoreline Park and the Shoreline Amphitheatre, where people can enjoy all sorts of live music and events,” said Redfin San Jose agent Kalena Masching.
“The area still has some relatively affordable homes,” Masching added, “and we’re seeing a lot of attention from the investment community where people come in and buy up the older homes under 1,400 square feet and turn them into modern, technology-filled homes that sell like hotcakes.”
9. Blacow, Fremont (San Jose Metro Area), CA
Median sale price: $1,005,000
Average sale-to-list price ratio: 109.4%
Percent of homes that sold above list price: 91.7%
“Blacow is a neighborhood in Fremont that is known for its relative affordability and schools in the areas that rankings have been increasing,” said Redfin Fremont agent Kat Said.
“People also really enjoy the new construction homes in the area and all the nearby places to shop. One hot spot is NewPark Mall, which has some of the best restaurants in town and is a short car ride away from most homes in Blacow,” Said added.
8. Sunnyside, San Francisco, CA
Median sale price: $1,272,500
Average sale-to-list price ratio: 125.0%
Percent of homes that sold above list price: 89.5%
“Sunnyside is a popular spot because it’s a bit more affordable than Glen Park, but still has easy access to 280 and Bay Area Rapid Transit (BART),” said Redfin San Francisco agent Miriam Westberg. “In recent months, homes Redfin listed in the neighborhood went under contract in as little as two days because there were so many well-qualified buyers ready to pounce on this desirable location.”