This blue-collar city and its posh surrounding suburbs benefit from neighboring San Francisco's spillover.

"[Oakland] is more affordable than the rest of the Bay Area, especially at the moderate- and low-end," said Leslie Appleton-Young, chief economist for the California Association of Realtors.

Oakland-area home prices have come roaring back since the housing bust, jumping 26% for the 12 months through last September, according to CoreLogic Case-Shiller.

Home prices: Your local forecast -- 384 markets tracked

With the region's high-paying tech industry going strong, deep-pocketed workers continue to flock to the area helping to push the median home price to a whopping $545,000.

CoreLogic expects home prices to climb another 9.3% by the end of September. Yet this hot market is expected to eventually cool. Over the next five years, CoreLogic expects home price growth to slow to 4.5% annually.