After months of inflation and rising mortgage rates, there’s a silver lining for those trying to make it in the Bay.
For the first time in 11 years, the median U.S. home price has fallen year over year. And, in the Bay Area, there are new signs that buyers are taking advantage of lower home prices.
The latest numbers from Zillow shows a spike in monthly mortgage payments have led to a drop both in homes for sale, and new listings, slowing the market.
"Higher mortgage payments that are curbing housing demand, but you also have constraints on the inventory side, inventory is still much lower than it was a year ago,” said Orphe Divounguy, Zillow chief economist.
But that has also triggered a drop in housing prices and that’s enough to get some sidelined buyers back in the game.
"I think there's a little bit of pent-up demand," said Holly Barr, real estate agent at Compass.
Demand that Barr says is boosting the value of the small number of homes on the market.
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"They're kinda out there in full force,” she said. “I'm seeing multiple offers, I'm seeing a lot of people downloading disclosures, I'm seeing busy open houses.”
It's a small blip, but we're heading into spring, and that traditionally brings buyers back -- if the price is right.
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"We're gonna see home buyers take advantage of every single small improvement in housing affordability,” said Divounguy.
