House Prices Are Under Pressure in the Bay Area
House Prices Are Under Pressure in the Bay Area
(Bloomberg) -- In the two most expensive U.S. real estate markets, both in California’s Bay Area, home values declined in July.
The price of a typical home slumped 10.5% from the same month last year in San Jose and fell 1.1% in San Francisco, according to a report issued Friday by Zillow. A year ago, home values were growing 24% annually in San Jose -- a 34.5 percentage point price swing. In San Francisco, the difference was 10.5 percentage points.
The markets of Los Angeles-Long Beach-Anaheim and San Diego were also among those California areas with at least a five percentage point swing in home values compared to a year ago.
Last year’s surge in Bay Area property values encouraged more homeowners to list their properties, according to the report. Inventories in San Francisco jumped 21.5%, while in San Jose, they surged 32.6%.
Among the top 50 markets, San Jose and San Francisco are the exceptions as prices are increasing in the other 48 markets. The median U.S. home is worth $229,000, up 5.2% from a year ago.
To contact the reporter on this story: Alex Tanzi in Washington at atanzi@bloomberg.net
To contact the editor responsible for this story: Vince Golle at vgolle@bloomberg.net
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