A new study shows that San Francisco home prices declined last month for the first time in four years, prompting speculation that skyrocketing prices may finally be slowing.
Although housing prices are still among the highest in the country, the median home price in March dropped 1.8 percent to $1,042,500, according a study by Redfin, a real estate brokerage firm. Sales also nosedived 22.1 percent, while inventory experienced a 4 percent boost.
“For years San Francisco has been one of, if not the most, competitive markets in the country,” said Richardson. “Now we are seeing this white hot market start to cool and contract.”
Still, it might be premature for prospective homebuyers to celebrate. Bidding wars are still the norm in the San Francisco real estate market, with 77.5 percent of properties selling above the asking price in a matter of days. For example, homes in the Castro typically spent nine days on the market and sold for about 109% of their sticker price.
According to Richardson, those rancorous bidding wars might be to blame for March’s decline.
“It’s about buyers fed up with high Bay Area prices and crazy competition,” she surmised.