TRACY, Calif. — Since the beginning of the COVID-19 pandemic, Tracy has become the hottest housing market in Northern California.
According to analysis done by the San Francisco Chronicle, from January 2020 to January 2022, home prices have continued to soar in the San Joaquin County city.
A typical home value now sits at $1,037,000 and appreciating at 58% in just two years time.
"We are a central location within an hour drive to many of the urban centers and markets. We have great recreation and safety, so all of these things combine to strong value recognition by new residents," said Michael Nimon, economic development director for the City of Tracy.
Many of the buyers flooding the Tracy market are from the Bay Area.
"When they get priced out of the Bay Area, when a home that's built in 1950 in Hayward is going for $1 million and they can buy a home here for a $1 million that looks like this, why wouldn't you go?" said Keller Williams realtor, Lisa Aguilera.
One of her soon-to-be listed homes, a four to five bedroom, three-bath, 3,366 square foot home in Tracy, sold in 2006 for $844,000.
Aguilera intends to list it next week at $1.25 million. She says it will sell very quickly.
"I think it's being driven a lot by the pandemic too, so many people are still working from home or their kids are being home schooled and they need more space. They come out to Tracy and get more space than they had in the Bay Area," Aguilera said.
New construction is also happening in the city. At the Tracy Hills subdivision, about 7,000 new homes are being built for as much as $1.2 million.
According to the city, housing permits pulled continue on the same pace as last year, meaning more homes and more demand.
When Rocio Hernandez, her husband and daughter got priced out of the housing market in Fremont, they looked to move to the more affordable Tracy.
"We make some multiple offers and we always bomb out by somebody else because they come up with bigger pockets than we had," Hernandez said.
The Bay Area family is now purchasing a home further east in Manteca.
Listed at $665,000, the family bid $31,000 over the asking price for the four- bedroom, two-bath, 2,114 square foot home.
Rocio Hernandez shared some advice for other frustrated homebuyers.
"Just be patient. There are house's out there, eventually, but it's there," He said.
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