A new report from the California Association of Realtors gives even more credence to the belief that the once-sizzling Bay Area housing market is cooling. The Mercury News staffer Richard Scheinin takes a look at this latest report which shows pending sales down in San Francisco and Santa Clara County by 21.2% and 12.5% respectively.
Jordan Levine, an economist for the California Association of Realtors, emphasizes that rising home prices are eating into demand with many buyers feeling less competitive after seeing the sticker price:
“It’s a question of finding the funds you need for a down payment,” he said. “When prices get to the levels that we’re seeing, you’re still having to come up with a pretty decent down payment — even if you’re a first-time home buyer getting an FHA loan for 3.5 percent down.”