That sound you hear may be some air finally escaping from the inflated San Francisco real estate market.
Home prices in the San Francisco Bay Area fell by 1.8% year-over-year in March, the first such drop in four years, according to Redfin , a Seattle-based real estate brokerage. Ã¢â‚¬Å“For years, San Francisco has been one of Ã¢â‚¬â€ if not the most Ã¢â‚¬â€ competitive markets in the country,Ã¢â‚¬Â said Redfin chief economist Nela Richardson. Ã¢â‚¬Å“Now we are seeing this white-hot market start to cool and contract,Ã¢â‚¬Â she said. Richardson noted that the share of Redfin properties facing multiple offers by buyers dropped to 77% in March from 94% compared to a year ago, Richardson added. Ã¢â‚¬Å“This suggests that the price drop is not about inventory, itÃ¢â‚¬â„¢s about buyers fed up with high Bay Area prices and crazy competition,Ã¢â‚¬Â she said.
In the city of San Francisco, the median value of homes has skyrocketed, from $670,000 at the beginning of 2012 to $1.12 million in April , a gain of more than 67%, according to Zillow.com, which puts the gain in the past year alone at 11%, though down from its year-over-year estimate of 14% in February. Last fall, a derelict two-bedroom, one-bath earthquake shack, built in the aftermath of the 1906 earthquake, sold for more than $400,000, 17% above its asking price. In addition, a similar fixer-upper along San FranciscoÃ¢â‚¬â„¢s famed Great Highway overlooking the Pacific Ocean, within walking distance of the city zoo and Golden Gate Park, sold for $1.2 million.
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