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."
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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.