The Bay Area, infamous for high home prices and stiff competition for housing, is unique in California’s housing landscape. Of course, it’s relatively expensive and difficult to be a homebuyer almost anywhere in California, but these complications are multiplied
exponentially in the Bay Area, leading to what many have deemed a housing
But have high home prices and competition finally reached their tipping point? Signs across the Bay Area point to: yes.
The Bay Area’s housing market is cooling in more ways than one, according to a recent Trulia
The average days on market has increased across the Bay
Area in 2018. This increase has been most significant in the:
As homes have sat longer on the market, the share of listings receiving a price
cut has also increased in cities across the Bay Area, including in the:
After nearly seven years of consistently rising home prices and competition for limited inventory, Bay Area homebuyers are finally beginning to see some relief. But for sellers and real estate professionals, a slower market can be problematic.
As homes have begun to sit longer and more price cuts have occurred, home
prices are starting to decline. In fact, mid-tier prices in San Francisco have experienced a decline each month since June 2018.
This may be news to our readers, as most media reports choose to focus on annual gains — after all, prices can be volatile on a month-to-month basis, and mid-tier home prices are still 9% above a year earlier in San Francisco due to gains experienced earlier
in the year. But first tuesday is confident that the decline
in home prices in the latter half of 2018 is only the start of a longer trend.
This forecast is based on three criteria:
What are real estate professionals to do with this information?
Armed with knowledge of a coming slowdown, real estate professionals can prepare today by: