San Francisco properties are still selling, but the frenzy of multiple offers for homes is cooling. Hipsters exult as asking prices appear in more cases to be enough.
Marketwatch staffer Daniel Goldstein reports that, per Redfin, home prices in the San Francisco Bay Area fell by 1.8% year-over-year in March, the first such drop in four years. Goldstein looks at expert observations, reasons, and implications for a market that has sizzled since about the end of 2012. He writes:
“For years, San Francisco has been one of — if not the most — competitive markets in the country,” said Redfin chief economist Nela Richardson. “Now we are seeing this white-hot market start to cool and contract,” she said. Richardson noted that the share of Redfin properties facing multiple offers by buyers dropped to 77% in March from 94% compared to a year ago, Richardson added. “This suggests that the price drop is not about inventory, it’s about buyers fed up with high Bay Area prices and crazy competition,” she said.