BERKELEY (KRON) — If you’re a first-time home buyer hoping to settle down in the Bay Area, new research shows that Berkeley is a bad place to start.
On it’s list of the 300 best places for first-time home buyers, personal finance website Wallet-Hub ranks Berkeley dead last, making it the worst place for first-timers.
The research data is based on affordability, the real estate market and quality of life.
“The average median home price right now in Berkeley is $1.2 million,” said realtor Bruce Wagg.
If the purchase requires at least a 20 percent down payment, the Keller Williams Realtor says that’ll cost you a quarter million dollars.
“There are some creative loan packages out there, shall we say,” he said. “But if you’re up against people who are putting 20, 30 and sometimes 40-percent down, or more — cash deals are out there still, though they’re rare, it’s very hard for somebody to break into the market.”
Wagg is based in the East Bay and says of the 300 homes sold in Berkeley so far this year, only ten were bought for less than $700,000.
“Now, if you’re going over to Oakland, where the average home price is more in the $800,000, people are still finding some value there, but they’re also having to go into neighborhoods that maybe are a little more marginal,” Wagg said.
Oakland isn’t too far behind Berkeley on wallet-hub’s list, coming in at number 297.
Tampa, Florida ranks first.