The Bay Area housing market has been cooling off since the spring of last year, with prices trending downwards. However, inventory remains tight, which is keeping prices elevated and benefits sellers. There are several factors contributing to the cooling Bay Area housing market.

First, rising interest rates are making it more expensive to borrow money to buy a home. Second, the stock market has been volatile in recent months, which has eroded some people’s wealth and made them less likely to buy a home. Third, the Bay Area has experienced a population decline in recent years, which is reducing demand for housing.

Despite the cooling market, home prices in the Bay Area remain very high. The median home price in the San Francisco-Oakland-Hayward MSA is still over $1 million, and homes in some desirable neighborhoods are selling for much more.

Here are some key trends in the Bay Area housing market as of October 2023:

• Home prices: Home prices are trending downwards, but they remain very high. The median home price in the San Francisco-Oakland-Hayward MSA is over $1 million.
• Inventory: Inventory remains tight, which is keeping prices elevated.

• Buyer demand: Buyer demand has weakened in recent months, but it is still relatively strong.

• Interest rates: Interest rates are rising, which is making it more expensive to borrow money to buy a home.