SAN FRANCISCO (KRON) — A dip in Bay Area home values could signal a possible shift from the long trending seller’s market to a buyer’s market. The latest Zillow report reveals those findings.
Bay Area home values are falling, not plummeting. However, a Zillow report finds they are dipping dramatically.
As sellers lower prices with less demand, the drop is outpacing the rest of the country.
“In San Jose, prices dropped 4.5% in a single month from June to July, and in the San Francisco metro area, they dropped 2.8% from June to July,” said Zillow economist Jeff Tucker. “They’re still up $1.4 million and more like $1.5 million in San Jose. So, this is still the most expensive part of the country, essentially, but that trend reversal is pretty striking.”
Tucker says this is the first time in a decade Bay Area home prices have fallen month-to-month.
“I think it’s definitely trending towards a buyers market,” Tucker said. “It’s more of a buyers market than home shoppers have seen in San Francisco for several years.”
Nationwide, Zillow says home values fell just 0.1% from June to July and the cost to buy a home is still 16 percent above last year and 44.5% above pre-pandemic levels.
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“Conditions are changing really quickly in the market,” Tucker said. “Buyers do have a lot more negotiating power now, and that’s starting to bring prices down, but it doesn’t change the fact that this is still the most expensive place in the country to buy a home.”