T
he Bay Area housing market has seen a significant shift in recent months, with overall prices falling for the first time in 13 months. The median sale price of a single-family home in the nine-county region dropped 1.6% year-over-year to $1.24 million, according to figures from the California Association of Realtors.

    In specific counties, prices ranged from $841,950 in Contra Costa County to $1.9 million in San Mateo County. The increased inventory has given buyers more options, with Barbara Clemons, president of the Bay East Association of Realtors, noting that sellers may need to adjust their pricing accordingly.

    The number of available homes on the market reached its highest level since February last year, driven by declining interest rates and a surge in listings. The 30-year fixed mortgage rate has fallen from 7.22% in May to 6.09% in mid-September, according to Freddie Mac. This trend continued with the Federal Reserve's recent half-percentage point cut.

    As a result, Bay Area home sales rose nearly 5% from August 2023. However, homes in certain areas took longer to sell, with a median of 20 days on the market, up from 14 days a year ago. Experts warn that pricing is crucial in this market, with Tim Yee, a broker with RE/MAX Gold, stating that those who are not pricing correctly are finding it out quickly.