A Home Buying Guide for Those Moving to the S.F. Bay Area in 2024

Are you planning to move into the San Francisco Bay Area in 2024? Do you hope to buy a home in the Bay Area later in 2024? Have questions about current real estate market conditions or the long-range outlook?

You’ve come to the right place! We created this fully updated home-buying guide for those who are relocating to the San Francisco Bay area in 2024 and plan to enter the real estate market.

What Is the San Francisco ‘Bay Area’ Exactly?

Let’s start with a bit of background, before we get to the real estate side of things. Here’s an overview of the San Francisco Bay Area including geography, population, and other useful info for people relocating in 2024.

Bay Area Geography and Makeup

Believe it or not, there is no official geographical definition for the “Bay Area.” But most people who use this term are referring to the nine-county region that extends from Silicon Valley in the south (Santa Clara County) to Wine Country in the north (Sonoma and Napa counties).

Here are those nine counties, along with their population estimates as of 2023:

• Alameda County (1,417,917)
• Contra Costa County (1,160,590)
• Marin County (266,201)
• Napa County (235,510)
• San Francisco County (873,965)
• San Mateo County (795,056)
• Santa Clara County (2,052,205)
• Solano County (450,539)
  Sonoma County (510,972)

You might encounter other definitions as well, especially at the metropolitan level. For example, this article cites reports that mention the ” San Francisco-Oakland-Hayward” metro area as well as the “San Francisco-Oakland-Berkeley” area.

(It’s a bit confusing, and you can learn more about the reasons why in this KQED article.)

These nine Bay Area counties cover an area of more than 4,600 square miles, including over 400 miles of combined coastline.

Much of the Bay Area offers a Mediterranean style climate that includes mild, dry summers and cool, wet winters. But it can get pretty hot in the summer throughout the inland valleys, often exceeding 100 degrees in July and August.

Major Cities in the Bay Area

There are 101 incorporated municipalities spread throughout the San Francisco Bay Area. Some of the most notable cities in the region include the following:

• San Francisco: The cultural and financial hub of the Bay Area, known for its iconic landmarks, diverse neighborhoods, and vibrant tech scene.
• Oakland: A diverse city with a thriving arts scene, growing tech industry, and affordable housing options compared to San Francisco.
• San Jose: The largest city in the Bay Area and the heart of Silicon Valley, home to major tech companies and a booming economy.
• Berkeley: A university town known for its academic institutions, progressive politics, and counterculture vibe.

The Local Economy

As you might already know, the San Francisco Bay Area has one of the strongest economies in the world. Our local economy is largely driven by technology, healthcare, finance and tourism.

But we also have a relatively high cost of living to go along with that. Housing costs in the San Francisco Bay Area are among the highest in the nation, and other cost-of-living factors such as food and transportation also exceed the national average.

When this article was published in early 2024, the median household income for the Bay Area was around $125,000 per year. But the average income can vary significantly depending on location.

The San Francisco Bay Area also has a booming tech industry. It’s home to “Silicon Valley,” a loosely defined region mostly located within Santa Clara County. The region is home to major tech companies like Google, Apple, and Facebook, which make up a big part of the local economy.

Bay Area Real Estate Market Conditions in 2024

The San Francisco Bay Area real estate market is unique in several ways. First (and perhaps most obvious) it’s one of the most expensive real estate markets in the United States.

It’s also an incredibly diverse region where real estate conditions can vary significantly from one city to the next. In 2024, the median price point can range from $570,000 on the low end up to $1.3 million, depending on the county.

Our housing market offers something for everyone, ranging from the downtown urban vibe of San Francisco to the rolling hills and bucolic scenery of Wine Country. Here’s what you should know if you’re planning to relocate and buy a home here in 2024.

Average Home Price North of $1 Million in Early 2024

As mentioned above, the San Francisco Bay Area is home to some of the most expensive real estate markets in the United States.

When this home buying guide was published, in early January 2024, the median listing price for the San Francisco-Oakland-Berkeley metropolitan area was around $998,000. That’s based on a January 2024 housing market update published by researchers at Realtor.com.

In January 2024, Zillow reported that: “The average San Francisco-Oakland-Hayward home value is $1,108,117, down 1.2% over the past year…”

But prices cover a pretty wide spectrum. Consider the January 2024 stats below:

• Most expensive: Santa Clara County with a median home price north of $1.3 million.
• Least expensive: Solano County with a median home value of around $570,000.

Back in the summer of 2022, the median home price in the Bay Area hit an all-time high just north of $1.2 million. Prices then experienced a downturn that stretched into the first part of 2023. When this report was published in January 2024, Bay Area home prices were beginning to creep upward again.

A Tight Real Estate Market with Limited Inventory

If you’re relocating to the Bay Area in 2024 and plan to buy a house, you should know that we are experiencing an inventory shortage. Many housing markets across the U.S. currently have low supply levels, but it tends to be more noticeable here in the San Francisco Bay Area.

According to the January 2024 Realtor.com report cited earlier, the total number of active real estate listings in the San Francisco-Oakland-Berkeley metropolitan area declined by -15% over the past year. And supply levels were already low to begin with, before that year-over-year drop.

But despite this shortage, the Bay Area housing market has cooled considerably since the “overheated” days of 2021 to early 2023. Homes are taking longer to sell these days, and they rarely go for more than the original list price.

In short, the market has shifted in a more buyer-friendly direction over the past year or so. And that’s good news for anyone who plans to relocate into the Bay Area and buy a home during 2024.

Meet Your Bay Area Mortgage Broker!

Bridgepoint Funding has been serving the San Francisco Bay Area for nearly two decades. We are a locally owned company that works with home buyers and homeowners alike, and we love to help new residents as well.

Please contact us if you have questions about mortgage financing for your new home in the Bay Area.

We offer a wide variety of mortgage products, including VA loans for military members, FHA and conventional financing, and super jumbo mortgage loans for borrowers who need multimillion dollar loans!