San Francisco Bay Area home prices are sky high, but Vallejo remains relatively affordable
While real estate prices in California and the San Francisco Bay Area continue to shatter records, there is one Bay Area city that is bucking that trend for now.
Median home prices in California were at an all-time high in April, according to figures released by the California Association of Realtors.
April's statewide median home price was $904,210, surpassing $900,000 for the first time ever. It was a 5.8% increase from March , when the median home price was $854,490. It was also an 11.4% increase from April 2023, when the median home price was $811,510.
The latest median home prices in the Bay Area by county:
- Alameda: $1,401,250
- Contra Costa: $940,000
- Marin: $1,700,000
- Napa: $950,000
- San Francisco: $1,800,000
- San Mateo: $2,150,000
- Santa Clara: $2,000,000
- Solano: $590,000
- Sonoma: $850,000
Statewide, the San Francisco Bay Area had the highest median home prices at $1,444,000. The second-highest median home prices were in the Central Coast at $1,077,500. The third-highest median home prices were in Southern California at $880,000.
Cathy Rojas, a realtor in Vallejo of 20 years, said she expects prices to increase in the housing market when interest rates eventually drop.
"Once interest rates go down and it makes [payments] more affordable, there's going to be a lot of buyers bidding on the same home. That will drive the price [up]. That's why I think a lot of buyers are just waiting for the decrease in interest rates," Rojas said. "Hopefully by that time, the prices won't go up even higher than they are right now. Hopefully. But I just don't see that. I think the prices will go up when interest rates drop."
Rojas was born and raised in Vallejo, a city in Solano County where median home prices were the lowest across the Bay Area by a margin of $260,000.
"Vallejo is still really affordable for people, especially younger homebuyers trying to get into the market. Anything on this part of the bridge, I just feel like there's more opportunity," Rojas said. "You can find a lot of bang for your buck over here."
Rojas also noted there aren't as many buyers in the current housing market.
"We just have a huge inventory right now. A lot more than we've had in our surrounding areas in the last couple years for sure. Maybe even the last three years," she said. "There wasn't a lot of inventory in the beginning of the year, but I feel like as soon as April hit, we started seeing more and more homes. A lot of people are leaving California, which is hard."