These Three California Markets are Hottest in the Nation

San Jose and San Francisco were once the Golden State’s hottest markets, but buyers are analyzing their desires and focusing on new emerging markets. Realtor.com’s round up of the hottest housing markets typically included San Jose and San Francisco, but more affordable markets near cities are dominating. Vallejo, Yuba City, and Stockton took the first, second, and third spots for Realtor.com's hottest market list. These areas are within commuting distance of Sacramento and San Francisco and are relatively cheaper than them. Read more to see what other markets topped the list.

In February, we saw a resurgence by California markets, which took the top three spots in our monthly ranking, and eight of the top 20. But San Francisco and San Jose, the twin poles of Silicon Valley, were nowhere to be seen on the list. Instead, the top three spots are Vallejo, Yuba City, and Stockton—all up-and-coming markets within commuting distance (if one had to actually commute) of San Francisco or Sacramento, the state capital. And while median home prices in the mid-six figures may look high, they’re a bargain compared with $1 million–plus in San Jose and San Francisco.

Of course, it’s not all about California—11 other states are represented among the top 20 markets. Notably, Austin, TX, jumped 92 spots compared with its position for this month last year, in spite of the severe winter weather it experienced in February.

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