Bay Area is home to six of the nation's ten most expensive home markets, including priciest
Recent data from a study of real estate markets around the country revealed that the Bay Area is home to six of the nation's ten most expensive home markets, according to the Central Valley Business Times. Additionally, the region is also where the single most expensive real estate market is located, in Los Altos, California. Such robust - and growing - prices have made the area one of the most indemand locations for families and potential homeowners looking at the houses for sale in San Francisco, among other key areas in the Bay Area such as Berkeley or Santa Clara.
According to CBS News, the average listing price for a four-bedroom, two-bathroom home in Los Altos is $1,706,688. The average price for a similar domicile in Redford, Michigan - which has been deemed the most affordable real estate market in the country - is listed at $60,490. For further comparison, the average listing price for a four-bedroom, two-bathroom home around the United States is $292,152. The houses for sale in Los Altos are substantially more expensive than they are anywhere else in the country, making it an appealing place for more affluent families looking to upgrade their residences. An availability of valuable homes has done little to bring the prices of these desirable properties down. Along with featuring beautiful architecture and year-round temperate climates, the region also features a booming economy with an eye toward the future.
"The success of many of our native tech companies has shined a spotlight on Silicon Valley and our real estate market in the San Francisco Bay Area," Rick Turley, a local real estate professional in the region, told the Central Valley Business Times. "Listing prices in our market are a product of ongoing high demand, projected population growth and the low inventory levels of homes in what is one of the most desirable locations to live.
Along with the aforementioned reasons that people have cited in relocating to California, the draw of the region's powerful tech companies cannot be underestimated. According to the news source, Google, Apple, Facebook and Stanford University are all located within 15 minutes of Los Altos. One of the biggest impacts that these companies can have on the real estate market in the region is the positive externalities of featuring a sterling reputation. The close proximity of these companies, among some of the biggest in the world, to Los Altos allows the city to share in their successes. Additionally, the aforementioned companies all hire new employees on a regular basis, keeping unemployment rates low. Finally, many of these technological jobs feature substantial compensation packages, which allows their employees to afford more expensive homes.
The other Bay Area regions that ranked high on the list of most expensive properties include Newport Beach (with an average home listing price for four-bedroom, two-bathroom homes of $1,658,000), Saratoga ($1,582,434), Menlo Park ($1,506,909) and Palo Alto ($1,495,364), the news source reports. However, despite the presence of all these high priced markets, California did not rank as the most expensive state. The average listing price of such homes in Hawaii and Massachusetts dwarfed the average listing price in California.