For the first time in a very long time, house prices fell thanks to rising mortgage rates and falling tech stock prices.
Whether they can drop further will depend on what happened next with those two factors.
But for now, at least, the Bay Area’s years-long rise in housing prices has taken a break.
Zillow said the average home value in the Bay Area was $1,494,000 in May and $1,492,000 in June, down 0.1%.
Local agents said it made things a little more normal.
“Not necessarily a buyer’s market, not necessarily a seller’s market, it turns into a 30-day market and selling at the ask price versus selling well above the ask,” said Holly Barr of Compass Real Estate.
But for young potential buyers, there is still a long way to go.
“Oh, I mean, you can lower it 50% here and you’re still going to pay a few million just for something like a two-bedroom house here,” Ahmad Khokhar of San Jose said, saying he’s still early to buy.
There might be more drops to follow.
Redfin said that of the 10 fastest-cooling housing markets in the country, five are in California, including San Jose at No. 1.