Homebuyers in San Francisco may be souring on the insane home prices that have dominated the city for nearly a half decade.
According to real-estate company Redfin, house prices fell 1.8% year-on-year in March. It was the first time prices have fallen in four years.
Data culled from the Federal Housing Finance Agency showed that prices rose 20.7% in the area in the fourth quarter, the worst rise in any US city.
Redfin Chief Economist Nela Richardson said in a release that the share of offers for property on their site dropped to 77% from 94% last year.
“This suggests that the price drop is not about inventory, it’s about buyers fed up with high Bay Area prices and crazy competition,” she said.
Cities like San Francisco and New York have seen steep rental and purchase price increases because of undersupply of available units and increasing demand from people moving back into urban centers.
Redfin believes if listings don’t increase there may be further declines in San Francisco and other areas as we head into the Spring.