Oakland Local

Oakland home prices rose by 23 percent in the past 12 months. Graphic courtesy of ZipRealty. 

As San Francisco home prices climb into the stratosphere, reaching a median price of over $1 million as of May 2014, Oakland real estate continues to climb out of the deep hole it fell into during the recession.

Oakland sales price data from Trulia.com

Oakland sales price data from Trulia.com

Recently released data compiled by ZipRealty shows Oakland prices increasing 23 percent during the past year, compared to 14 percent in San Francisco and 11 percent in Alameda. Berkeley’s median value declined by $12,000, or just over one percent. Despite that growth, Oakland remains the least expensive of the four cities, with a median price of $478,000, less than half of San Francisco.

“It’s a scramble anywhere you go [to buy real estate] in Oakland and one of the biggest reasons is that the median home price is in the $400,000s,” said Don Cruz Datanagan, ZipRealty’s District Broker for the East Bay. He said that investors are still a factor in the Oakland real estate market despite rising prices. “When you are an investor who is thinking long term,” he said, “Oakland certainly has those opportunities [for return on investment].”

Oakland home sales data from Trulia.com.

Oakland home sales data from Trulia.com.

Oakland’s most expensive zip code, 94611, which encompasses Piedmont Pines, Grand Lake, Glen Highlands, Shepherd Canyon and Merriewood, had a median price of $795,00, a two percent decline from last year. By contrast, San Francisco and Berkeley saw tremendous growth at the upper end of their price ranges, with San Francisco’s priciest zip code topping $3 million and home prices increasing by 133 percent in another high-end neighborhood.

“A number of up-and-coming neighborhoods in Oakland are really on the rise as more people get priced out of San Francisco and more affluent East Bay communities, like Berkeley,” said Stacey Corso, a spokesperson for ZipRealty. “Home buyers are flocking to far east and far west neighborhoods of Oakland in search of better real estate deals.”

The three fastest growing Oakland zip codes, where prices rose nearly 50 percent in the past year, are in Deep East, near the San Leandro border, and in West Oakland. All had median prices lower than the citywide figure.

Put together, the numbers begin to paint a picture of a sorting that’s happening in the Bay Area, with middle-income people and young families flocking to Oakland as San Francisco and Berkeley real estate becomes increasingly pricey.

“Most of my homebuyers are first time homebuyers. That’s regardless of price point. If they’re selling they’re leaving and if they’re buying they’re new.”
Martha Hill, real estate agent with Pacific Union

“It really reflects what I believe is a pretty intense San Francisco population coming our way,” said Hill.

America Foy of Sotheby’s International Realty agrees, with the qualification that he believes the effect is limited to specific neighborhoods. “Anywhere where you can walk,” he said, mentioning Elmwood, Rockridge, Mosswood, and the MacArthur BART area. “If you can’t get on the Google bus or go downtown or walk to a restaurant, the market is flattening,” he added.

The average Oakland resident; graphic courtesy of JLL Research.

The average Oakland resident; graphic courtesy of JLL Research.

Both Hill and Foy believe the Fruitvale will be one of the next booming neighborhoods, with its great access to BART and wealth of local restaurants and shops.

For young couples before they have children, Oakland “is really the place to be,” Foy said. With prices starting at below $200,000 in some neighborhoods, Oakland real estate remains one of the best deals in the Bay Area.

41 thoughts on “Oakland real estate prices surge for a second year, still below 2007 peak

  1. Still smells bubbly to me. Especially since interest rates are still extremely low by historical standards even if it’s tough to get a loan.

    Prices in some areas of Berkeley and Oakland have definitely gone above the real estate bubble high even if the median prices have not.

    A totally rehabbed, 3br 3ba house w postage stamp yard, on busy Webster St in Temescal sold for 1.1Mill. That is the highest price paid for any single fam home in Temescal, ever.

  2. Pingback: Should real-estate sites offer neighborhood racial, ethnic info? | Lower Bucks County Real Estate

  3. @Len – to be sure prices are going up, especially in certain micro markets, but the $1.1 Million Webster St home you site was actually two homes.

  4. Pingback: Oakland real estate prices surge for a second year, still below 2007 peak | Free Local Real Estate

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>