San Francisco's torrid housing market is in a state of correction according to CNBC's Diana Olick. While the metro's homes are still some of the most expensive in the country, the market is showing some weakness, with sales dropping 19.5% in September from a year ago.

Home prices are rising—the median price of homes in San Francisco was $1.189 million in September, up 11.6% from a year earlier. A home price that high is almost five times the national median home price.  

"We're going through a kind of correction, as we have a lot of new developments being built right now. The supply is definitely on the rise," said Justin Fichelson, an agent at Climb Real Estate Group in San Francisco. "The market is not going to continue going up like we've seen in the past two years, because prices are already high."

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