As 2017 gets underway, many are wondering what the new year will bring in terms of real estate markets. One thing is for sure, the San Francisco Bay region will continue to be an in-demand location. With the continuing trend in Urban Villages gaining speed, many metro areas are becoming stronger real estate markets. But which neighborhoods will see the biggest gains and strongest growth? As reported by the Mercury News, Zillow has released its list of what they predict will be the hottest neighborhoods in the Bay Area during 2017.
The list was compiled based on current price ranges, and anticipated price growth for 2017. When looking at this data, a clear theme emerges. Within major metro areas such as Palo Alto and San Francisco, where average home prices are well above $1 million, a smaller percent of price growth is expected. With other areas, such as San Jose and Oakland, with more homes significantly below the $1 million market, demand is poised to grow quickly.
When Realtors say the key to selling a home is “Location, Location, Location”, we are not kidding. But understanding why a location grows in demand can provide home sellers and buyers with valuable knowledge. For 2017 the big location key is proximity. The list of hottest neighborhoods which are growing in demand is due in large part to their close proximity to major metro areas, alongside their availability of homes within a wider, and often more affordable price range.
For example, there is a greater challenge in finding the ideal property in San Francisco, but not so in Oakland. More and more people are turning to the Oakland area as a great alternative for buying a home, yet still being able to enjoy all the benefits and amenities which San Francisco has to offer. This is reflected in the number of hot neighborhoods for 2017 being in and around Oakland.
The Mercury News article included two lists of the predicated hottest neighborhoods according to Zillow. One was for the San Jose area and the other for the San Francisco area. The top three neighborhoods for the San Jose area include the East Murphy and Lakewood Village neighborhoods in Sunnyvale, and Old Palo Alto. For the San Francisco area, all ten predicted neighborhoods are in Oakland. The top three are North Stonehurst, St. Elizabeth and Highland.