Making It in the Bay

Bay Area Home Prices Continue to Drop Along With Inventory

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Home prices in the Bay Area continue dropping. But the bad thing is, so is the inventory.

Prices are lower by about 8% since June, according to Re/Max. 

"There will be a sweet spot coming," said Tim Yee, president of Re/Max Gold Bay Area.

He added that because of high mortgage rates and low inventory, that sweet spot to boost home sales isn't here yet -- largely because people aren't selling their houses.

"People are getting used to the fact that something that may have been worth 20 or 30% more in the last six months is worth a little less now, so they're getting a little less bang for their buck," said Yee. 

So, without inventory -- a relatively small price drop leaves homes still too pricey for most young buyers.

"It's definitely not enough," said Katarina Capulong of San Jose. β€œIt is definitely a goal, but I don't see it ever happening for me personally, because I want to be a teacher, and teachers do not make enough money to even survive in the Bay Area.”

Emiliano Jimenez of San Jose said, β€œI'm studying right now to be a civil engineer, and coming out of college I won't be able to afford a house here … and I'll be an engineer."

Experts say one thing that would convince more people to sell is more options to buy something else in the Bay Area. 

Also, some people said they're hesitant to sell right now, because prices are dropping. But, they admit, they don't know where prices go from here.

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