Making It in the Bay

‘A Lot of Changes': Bay Area Home Prices Continue Downward Trend

NBC Universal, Inc.

Home prices are still on the decline in the Bay Area from the same period a year ago, according to a Redfin report.

In San Francisco, prices have seen the greatest drop nationally, down 15% year over year, or about $1,500 a month in mortgage savings, the report shows.

Oakland was fourth with an 11.6% drop, or about $700 a month in savings, and San Jose was sixth with a decline of 10.6%, or about $960 in monthly savings.

Redfin credits the drop in mortgage rates and decreased housing demand.

"It’s hard to predict, though, because San Francisco is facing a lot of changes," Daryl Fairweather, chief economist with Redfin, said. "There's no longer this strong pull of workers to the area to get a tech job. You can get a tech job just about anywhere. And a lot those tech San Francisco (companies) are laying off workers, so maybe people don’t feel like it’s really worth it to pay for a home when job security is not as great as it used to be."

The Bay Area, however, remains one of the most expensive markets for homes in the U.S., with median monthly payments of $8,496 in San Francisco, $8,116 in San Jose and $5,443 in Oakland.

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