For the third month in a row, Realtor.com has ranked the San Francisco metro area as the hottest housing market in the U.S. based on buyer interest and fewest days on the market. Three other Bay Area cities also made the top 20 list.
Less than one-third of California's housing stock is affordable for a median-income household, and in certain Bay Area counties the amount of affordable properties on the market is practically nonexistent.
A limited number of homes for sale fueled prices across the country in the second quarter, with more than 90 percent of metro areas posting annual gains. San Jose and San Francisco were the nation's two priciest housing markets, where homes cost about four times more than they do nationwide.
Increased demand for Golden State homes this spring pushed second-quarter prices to levels not seen in nearly eight years, further reducing affordability. In fact, the percentage of Californians who could afford to buy a home was down from the first quarter in every county but one.
Inventory conditions remained tight across the Bay Area as the third quarter began, with the months' supply of inventory (MSI) dropping or remaining flat from the previous month in the majority of Pacific Union's regions. Get all of the latest home sales data for the Bay Area and the Lake Tahoe/Truckee region in Pacific Union's July 2015 Real Estate Update.
Our second-quarter 2015 report is packed with data and regional summaries that offer a complete look at real estate activity in the Bay Area and the Lake Tahoe/Truckee region, including data for more than 70 individual communities.