Bay Area home prices for the month of May have taken their biggest hit in over seven years. The median price of a home in the Bay Area is now $860,000—a 1.7% drop from May of last year, according to a report released by real estate data company CoreLogic.
Sales in the region are down 2.7% year-over-year.
"So far this year, the annual change in the Bay Area’s median sale price has been close to flat, whereas early last year the median experienced double-digit annual growth," CoreLogic analyst Andrew LePage said. "This change reflects the erosion of buyer affordability after years of rising home prices and last year’s run-up in mortgage rates. The combination caused would-be buyers’ mortgage payments to far outpace income growth, pricing out some and causing others to back out of the market."
The drop occurred specifically in Alameda, Santa Clara, San Mateo, and Solano counties. The biggest drop occurred in Santa Clara county, with 11% fewer homes sold in May of this year than the same period in 2018.
The median home price in the nine-county region was still among the highest in the country.
Napa was the only county in the region to see significant growth with a 23.3% increase in homes sold in May of this year compared to May 2018.
