If I had a million (extra) dollars, I could buy a median home in the San Jose metro area...maybe.
Four of the nation’s five costliest housing markets are in California, with the Bay Area continuing to lead the pack.
As a result of these hefty price tags, Bay Area homebuyers need to earn the largest annual qualifying incomes in order to afford to purchase a property assuming a 20 percent down payment: $176,071 in San Jose and $146,401 in San Francisco.
Many say the market is overvalued by about 16% (see Fitch Ratings). Additionally, as technology stocks slide (Nasdaq is down 15% this year) high end buyers are likely to hold cautiously back, waiting to see where things go.
NAR puts the median sales price in the San Jose metro area at $940,000 in the fourth quarter, the highest in the country and up 9.9 percent year over year. San Francisco ranks No. 2, with prices at $781,600 for an annual gain of 9.2 percent. Anaheim-Santa Ana ($708,700) and San Diego ($546,800) placed No. 4 and 5, respectively. The San Francisco metro area also had the highest condominium prices in the country, at $678,300. (NAR does not provide condominium data for San Jose.) Condo prices in San Francisco were up 15.9 percent year over year.