Million dollar homes in Bay Area to feel the heat this year

  • Pacific Union expects cumulative price appreciation of 10 percent in the Bay Area during the next three years.
  • The $5 million and above housing market will be impacted to a lesser extent by stock market volatility.
  • Pacific Union's closed 16 percent more deals this January than last.

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With the stock market down roughly 10 percent from last year and volatility expected to persist, homes in the Bay Area are forecasted to experience some softness, in terms of sales and pricing, later this year. The forecasted “softness,” however, will not be uniform across all housing price tiers, according to Selma Hepp, economist for real estate firm Pacific Union, who notes the Bay Area is more sensitive to stock market-wealth effects than other parts of the country.