Median home sale prices dropped in these three Bay Area Counties
It is still a tough market for home buyers in the Bay Area, but in some cities, it may be a little easier to buy than before.
The median sale price of homes actually dropped in some Bay Area counties compared to last year. While the Bay Area has always been a "hot" sellers' market, there are signs that factors like high interest rates, low supply, and the ability to get insurance are impacting sales.
According to data from the California Association of Realtors, median sale prices in July dropped in three Bay Area counties:
- Marin County - the median sale price for a home in July was $1.6 million, a 1% drop from the same time the year before
- Solano County - median home prices saw a bigger decline, with the median price at $586,000—a 2.4% drop
- Sonoma County - the median sale price was $850,000, a much more slim 0.1% decline in sale price
The real estate website Redfin reports that these same three Bay Area counties have more of what are called "stale" properties—homes that sit on the market for about a month without an immediate buyer.
Several factors could be contributing to these trends. Interest rates remain high—around 6.5%—which may cause more buyers to stay out of the market, waiting for rates to drop before making a purchase. Insurance issues may also be a factor. According to the California Association of Realtors, nearly 7% of recent real estate transactions statewide fell out of escrow due to insurance problems.
For buyers in high-risk wildfire zones, such as Marin and Sonoma counties, the inability to find homeowners insurance may also play a role in these market dynamics.