Bay Area home sales dropped and prices slid in June. Here’s by how much

Median sale prices for single-family homes slid last month in all of the Bay Area’s nine counties except Solano, according to the association’s figures. Marin County’s median sale price in June was $1.8 million and represented a 14% decline from May — the biggest month-over-month decline in the Bay Area.

Monthly median prices declined by 8% in Alameda, roughly 6% in San Francisco and Santa Clara, and 5% in Contra Costa.

California’s median sale price in June was $863,790, down 4% from May’s median of $900,170. The association expects California’s median sales prices will go up just 9.7% in 2022 compared to last year, when home prices went up by almost 20%.

Home sales saw more notable declines across the Bay Area and California.

Bay Area sales dropped by roughly 27% in June compared to last year. San Francisco (15% decline) and San Mateo (19%) had some of the region’s biggest month-over-month drops in sales last month. Year-over-year sales declined by double digits in every county in the Bay Area and Southern California, according to the association.

“Excluding the three-month pandemic lockdown period in 2020, June’s sales level was the lowest since April 2008. Pending sales data also suggests we can expect additional retreating in the coming months,” Jordan Levine, chief economist for the California Association of Realtors, said in a statement. “With inflation remaining high and interest rates expected to climb further in the coming months, the market will normalize further in the second half of the year with softer sales and more moderate price growth.”

Climbing mortgage rates and faltering stock prices have made the Bay Area one of the fastest-cooling markets in the country. Bay Area home values also went down in June for the first time since the start of the pandemic, according to Zillow.

Real estate agents said the changing dynamics have given active homebuyers more leverage as bidding wars become less common. But rising interest rates have also shut out many prospective buyers as the cost of buying a home in one of the world’s priciest regions becomes more expensive.

Slowing demand from home buyers has led to a modest bump in inventory — statewide, it reached its highest level since 2019 but remains low, overall — and home listings are on the market slightly longer. Listings in the Bay Area sat on the market a median of 12 days in June.

While the region’s housing market has begun a cooldown, it remains hotter than it was before the pandemic. In San Francisco, for example, 88% of homes sold in June went above asking price.

Sheila Cunha, president of the Bay East Association of Realtors, said June’s market slowdown signals that home prices will begin to “stabilize” after soaring to record highs during COVID.

The Pleasonton-based real estate agent said local inventory has gone up higher “than we’ve ever had in a long time,” though listings are sitting on the market longer. Slowing demand will give buyers more time to consider their options and negotiate with sellers.

“It’s kind of like a return to how it used to be before the pandemic hit — where a buyer had an opportunity to look at a house for longer than 15 minutes before making the most important decision of their life,” Cunha said. “Sellers have been very blessed these last three years. They’ve seen upwards of 40% increase in prices in their homes, which is not normal.”

Ricardo Cano is a San Francisco Chronicle staff writer. Email: ricardo.cano@sfchronicle.com Twitter: @ByRicardoCano

Article source: https://www.sfchronicle.com/bayarea/article/Bay-Area-home-sales-dropped-and-prices-slid-in-17313110.php

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