DataMarkets & Economy

Bay Area market normalizing, Pacific Union says

San Francisco and Silicon Valley buyers taking more time to finalize purchases
  • Prices aren’t dropping in the Bay Area, but appreciation slowed to around 3 percent in the second quarter.
  • In San Francisco, homes came off the market more leisurely in the second quarter.
  • Sales slowed in $3 million-plus sector of the Silicon Valley market.

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Bay Area market take note: buyers have more flexibility compared to the high competition and urgency seen over the last few years. While sellers can expect to see more time on the market and fewer bids, luxury real estate brand Pacific Union, affiliate of Christie’s International, describes the recent shift as a healthy normalization in its quarterly report. “We expected this normalization,” said Selma Hepp, Pacific Union Chief Economist. “It was natural to see what we saw in the last couple of years given tech employment, incomes rising and the sheer investments in the Bay Area.” Together with John Burns Real Estate Consulting, Pacific Union’s economic forecast released last year followed the general trend seen in the second quarter of 2016. Prices aren’t dropping for the Bay Area market, but appreciation slowed to around 3 percent in the second quarter. Luckily, there’s a big cushion for price flexibility in the Bay Area. Although the Bay Area m...