Median home prices in San Francisco have fallen by more than $300,000 in three months, real estate website Compass reports in a new survey analyzing the Bay Area real estate market.
Yes, prices are falling, but many potential home buyers still consider the cost to own a home in the Bay Area too high for them to commit to with mortgage rates still up. Experts said it is tough to buy a home now as prices are likely to fall further.
"As that's happening, we're seeing sales start to dip," said Nicole Bachaud, a senior economist at real estate website Zillow. "We're seeing homes stay on the market longer so inventory is beginning to pool up, and that's going to drop prices as demand is taking a step back because people just can't afford to be transacting in this market.
Meanwhile, Redfin numbers show some prospective homebuyers are getting cold feet. The real estate website reports 23% of those who signed a contract to buy a home in Northern California backed out of the deal -- that is double the number from last year.