Oakland, California (EastBayDaily) — After a more than a few rough years, the city of Oakland is making a comeback in a big way. Brian Cheek reports that Oakland has covered much ground in its journey from San Francisco’s rougher, smaller neighbor to a bustling metropolitan area with a wealth of cultural and entertainment attractions, making it an increasingly attractive place to live.
Amid a growing number of sophisticated restaurants and bars, music venues and nightlife destinations, Oakland is a city that is rising on the radar of many Bay Area residents. Citing more reasonable home prices and a burgeoning arts culture, Oakland is attracting families, artists and young professionals to a market that is seeing an immense increase in demand.
According to Altos Research, a major factor in the influx of residents to the area is that it is much more affordable than its larger, more affluent neighbor, San Francisco. Altos reports the median price for a single family home in San Francisco is an astronomical $947,962, while nearby Oakland reports a much more reasonable value of $369,415.
“Given the price difference between the two cities, Oakland is offering a lot more bang for the buck,” says Brian Cheek, REALTOR® for Alain Pinel Realtors. “Home owners in Oakland are paying a lot less, but still getting a lot in terms of culture through a blossoming restaurant and art scene.”
Market conditions are a lot more reasonable for home buyers trying to get into Oakland as well. Altos configures an amalgamation of supply and demand levels through a value called the Market Action Index. This measures from a neutral value of 30 whether the market is trending high in favor of sellers or low in favor of buyers.
With an MAI of 58.38, Oakland is exhibiting a high demand for housing while inventory is struggling to keep up. Although this is leaning heavily in favor of home sellers, Oakland’s MAI is looking a lot more mobile than San Francisco’s, which is skewed in favor of sellers by almost 20 additional data points at 76.11.
This extreme value will continue to drive prices in San Francisco even higher. As Oakland continues to evolve, its MAI will no doubt drive further appreciation for homes in the area, which marks now as the time to make moves on this great market.