For first time in 7 years, Bay Area home prices are dropping, report says

Bay Area

SAN FRANCISCO (KRON) — For the past five months, homes values have fallen in the Bay Area, breaking a seven-year record of insane gains where prices reached unsustainable levels.

“It is less about job loss, less about recession, this is a housing market correction,” said Skylar Olsen with Zillow.

According to Zillow, from month to month in San Francisco, home values fell a half-percent, with the median home value is now $946,700.

The cool down is also in the San Jose area, where home values fell 1.4 percent, with the median home value at $1,193,600.

“The silver lining of dropping home values is that this is an important reset for a lot of buyers saving for that down payment,” Olsen said.

In San Francisco, inventory is up almost 20 percent — there are 1,262 more homes on the market than last April.

In San Jose, inventory is up nearly 40 percent — with 828 more homes on the market than last April.

New homes are under construction and more homes are for sale, but buyers are not out bidding each other anymore.

Zillow made clear the numbers indicate a correction, not a housing crash.

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