Prospective Bay Area home buyers abandoned the market in August, as home sales dipped to a nine-year, monthly low despite falling interest rates and more choices.
Sales of existing and new homes fell 5.3% from the previous August, and were off more than 20% from the historic norms for the month, according to a report released Thursday by real estate data firm CoreLogic. Residential real estate transactions have dropped 13 straight months.
Existing-home prices remained stable — at budget-busting levels for most buyers — in the nine-county Bay Area region. The median home price in August was $843,000, down 2% from the previous year, according to CoreLogic data.
Sales could have been even worse, cautioned CoreLogic analyst Andrew LePage. "The recent drop in mortgage rates likely helped temper that decline," he said.
Bay Area home sales have slid, year-over-year, for the last 13 months. High demand and low inventory have driven prices to among the highest in the country, squeezing many buyers looking to get into a house or condo.
The region saw hotspots in August in different counties: median prices jumped 4.7% to $649,000 in Contra Costa, grew 2.8% in San Mateo to $1.45 million, swelled 7.2% in Marin to $1.23 million and increased 1.4% to $1.5 million in San Francisco, according to CoreLogic data.
But other counties saw price retreats: median prices for existing homes dropped 8.1% in Santa Clara to $1.13 million, and fell 4.2% in Alameda to $862,000.
Local agents said the market has cooled since a peak last spring, when the median sale price hit $928,000. Buyers have more options and have been more willing to wait for the right home, neighborhood and school district. Entry-level homes, priced around $1 million in Silicon Valley communities, have been the quickest sellers.
