Report: 70% of Bay Area Home Sales Priced Above $1 Million in 2022

Most of the homes sold within the San Francisco Bay Area have ended up selling for more than $1 million. That’s based on a report from the state’s Realtor association, which is summarized below. A separate report showed that the Bay Area leads the nation in terms of home sales at or above $1 million, and by a wide margin.

This is largely due to a rapid and significant increase in home prices that began in the fall of 2020. During that timeframe, the median house value for the San Francisco-Oakland-Hayward metro area increased by more than $300,000. Today, the median price point is fast approaching $1.5 million.

Bay Area: the Land of Million-Dollar Homes

Let’s start with a recent report from the California Association of REALTORS® (C.A.R.). In April of 2022, the industry group reported that home prices in California rose to another all-time record high. The statewide median house value rose to around $849,000 in March of this year, an increase of nearly 12% from a year earlier.

Here in the San Francisco Bay Area, home prices rose by a whopping 17.9% during that same 12-month period. So we are ahead of the statewide average, in terms of annual price growth.

The real estate data company Zillow is reporting similar numbers for our real estate market. In early May 2022, the company reported that home values for the San Francisco-Oakland-Hayward metro area had risen by 20.1% over the past year alone.

These trends have led to an increase in the number of Bay Area home sales above the $1 million threshold. In fact, the vast majority of sales recorded in March went for more than $1 million.

To quote the C.A.R. report mentioned earlier:

A surge in sales at the top end of the market was the primary factor for the jump in the statewide median price at the end of the first quarter … Additionally, strong month-to-month sales growth in the San Francisco Bay Area contributed to the jump in sales of million-dollar homes statewide, as 70 percent of the region’s sales were priced above $1 million, and sales in the region increased 70.5 percent from February.

This probably comes as no surprise to Bay Area residents, especially those who have bought a home recently. Still, it’s a trend worth reporting because it affects everything from budgeting to mortgage financing — and for a growing number of people.

A Product of Steadily Rising House Values

The San Francisco Bay Area real estate market has always been pricey when compared to national averages. But the high percentage of home sales above $1 million developed within that past decade.

Ten years ago, the median house value for the San Francisco-Oakland-Hayward metro area was in the mid-$500,000 range. We’ve come a long way since then. When this article was published, in early May 2022, the median price point was approaching $1.5 million.

The “median” is essentially the midpoint for the real estate market, in terms of pricing. This means half of all homes in the area are currently valued above $1.5 million, while the other half are priced below that level. This explains why we are seeing so many Bay Area home sales above $1 million in 2022.

Solano County Much More Affordable by Comparison

Solano County continues to buck the Bay Area trend by offering relatively affordable homes. As of March, the median sale price for existing single-family homes in Solano County was $604,000. That’s less than half of the median for the Bay Area as a whole.

This is something we’ve written about before. Bay Area home buyers with smaller budgets, but some degree of location flexibility, might want to consider Solano County. Buyers can get more house for the money in that real estate market.

Need a Mortgage Loan for More Than $1 Million?

The rising percentage of million-dollar homes in the San Francisco Bay Area also underscores the importance of mortgage financing. With so many homes priced above the $1 million mark, most home buyers in the area have to rely on mortgage loans to facilitate a purchase.

Bridgepoint Funding has been helping Bay Area home buyers and homeowners with their mortgage needs for nearly 20 years. Our broker-based business model gives us access to a wide variety of loan products. We regularly generate loans in excess of $1 million, for Bay Area borrowers who need a higher level of financing.