CA: Bay Area Sales Slow
In May, the number of homes sold in the nine-county Bay Area region fell nearly 20 percent compared to the same month a year earlier. The median price of a resale house rose to $671,000 last month, up 1 percent from April’s figure of $664,000, and up 6.5 percent from May 2005.
However, in some of the area’s most sought-after neighborhoods, for some of the best-priced homes, competition among buyers appears to remain strong. One area expert referred to the recent downard adjustment as a “rebalancing” due after several boom years. Since there is still a stable core demand, and a decline in speculative and discretionary buying, the downward trend is likely continue in the near future.