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follow Patrick 2018 Dec 6, 5:59pm
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House prices down $265,000 from peak, down $60,000 from year ago. America’s most majestic housing bubble begins to deflate.In San Francisco, the median price of single-family house sales that closed in November fell to $1.435 million. This is down a blistering $265,000 or 15.5% from the crazy peak in February of $1.7 million – a time when only the sky was the limit. And down by $60,000 from November 2017. This puts the median house price below where it had first been in May 2017. Note the steep slope from the peak in February:...Sales volume for all types of dwellings combined fell 14% in November, compared to a year ago, to 444 homes.In San Francisco as well as the counties of San Mateo and Santa Clara, which make up Silicon Valley, the underlying dynamics of the housing market changed last summer and have since taken a more serious turn for the worse. These median selling prices show that the underlying dynamics have come to the surface.
My feeling is that the declines in SF Bay Area housing will continue for a few years at least.