Making It in the Bay

Bay Area Real Estate Market Shows Homes Selling for Median Price of $1.1 Million

NBC Universal, Inc.

Looking to buy a home in the Bay Area? Set a budget of more than $1 million or expect to be disappointed.

That's what real estate agents are telling clients after the median price of a single family home has topped $1.1 million.

Real estate agent Rigo Bracamontes on Monday gave a final tour to a man who just purchased a home on North Fourth Street in downtown San Jose. He calls the home a major fixer-upper. The property sold for $850,000 in an all-cash deal -- a bargain according to the buyer.

Bracamontes and the buyer point to the average Bay Area home going for over $1 million on the market. Sellers are listing their homes on the lower end just to create an auction-type frenzy, the real estate agent said.

Several buyers are coming in with all-cash offers, leaving many middle-class families and first-time buyers in the dust.

"Those buyers are having a really hard time," Bracamontes said.

Bracamontes said it is unfortunate when those working people cannot afford a major fixer-upper.

"Right now, in San Jose, if you're looking to buy something under $1 million, you're not going to have many choices," he said.

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