For the first time in a very long time, housing prices have dropped thanks to mortgage rates going up and tech stock prices going down.
As far as whether they can drop more, it will depend on what happened next with those two factors.
But for now, at least, the years-long nosebleed rise in Bay Area housing prices has taken a pause.
Zillow said the average home value in the Bay Area was $1,494,000 in May and $1,492,000 in June — a drop of .1%.
Local agents said that just makes things a little more normal.
“Not necessarily a buyer’s market, not necessarily a seller’s market, it’s turning into a 30 days on market, and selling for asking price versus selling for way over asking,” said Holly Barr of Compass Real Estate.
But for young would-be buyers, there’s still a long way to go.
“Oh, I mean, you can drop it by 50% here and you’re still gonna pay a couple million just for something that’s like a two-bedroom home over here,” said Ahmad Khokhar of San Jose, saying it’s still early to buy.
There could be more drops to follow.
Redfin said that among the 10 fastest cooling housing markets in the country, five are in California — including San Jose at No. 1.
Source: NBC Bay Area