San Francisco real estate market is showing some signs of cooling down with a drop in home prices for the first time in four years.
As reported by MarketWatch, house prices fell by 1.8 percent in March compared to the same period last year, according to real estate brokerage firm Redfin.
The publication noted that Redfin chief economist Nela Richardson said that the Bay Area, which is one of the hottest property markets in the country, is starting to contract and cool down as buyers become "fed up" with high prices and competition. In Redfin's case, the Seattle-based company saw only 77 percent of its listed properties having multiple offers from buyers. That is down from 94 percent a year earlier.
Meanwhile, MarketWatch further reported that according to Zillow.com, the median price of homes in San Francisco rose to $1.12 million in April, a 67 percent increase from $670,000 in 2012 and 11 percent rise from 2015. Still, Zillow is among the experts predicting a slowdown in San Francisco Bay Area's property market.
CBS Local said that home prices are starting to even out, partly driven by the number of new stocks scheduled to be added in the property inventory. Arrian Binnings of Pacific Union/Christie's International also noted that when buyers could get as much as 12 percent more than their initial asking price in 2015, this year they can only get around 5-6 percent more than the asking amount.
The tech industry likewise has a big influence in real estate market performance of San Francisco. When the industry booms, property value and rents appreciate. As the industry is now facing a risk of another collapse like what happened in 2000, experts say the Bay Area is up for some price correction in relation to a decline in venture capital awards in the city.
