The beleaguered Bay Area housing market is showing few signs of a turnaround. Home prices are falling faster here than anywhere else in California, a new report shows, and real estate experts expect them to continue tumbling well into 2023.
Tech layoffs, recession fears and a volatile stock market have all played a part in tamping down prices since the middle of last year, battering home values that soared to record highs amid a pandemic buying boom.
The biggest factor cooling the region’s once-scorching housing market? Higher mortgage rates. Monthly home payments have spiked, sometimes by thousands of dollars, squeezing out many would-be buyers.
“There’s still buyers out there, but they have to have some intestinal fortitude to buy in this market,” said Jeff LaMont a real estate broker with Coldwell Banker Realty in Burlingame.
The median price of existing single-family homes in the Bay Area was $1.08 million in December, according to the latest report from the California Association of Realtors. That’s an 11.5% reduction from November and a 9.6% drop from December 2021 — both the largest declines of any region in the state.