Housing sales in the Bay Area fall from 10 percent in August to a seven-year low

In August, the number of homes sold in the Bay Area fell by 10% due to the scarcity of affordable housing. The business hit a seven-year low of 7,659 sales, according to real estate information company CoreLogic.

The median price increased 12.2% year-over-year to $ 830,000 in August, but down 2.2% from one month to the next. Prices have fallen in recent months after peaking at $ 875,000 in June and May, but remained around $ 1 million in Marin, San Francisco, San Mateo and Santa Clara Counties. The median home price in San Francisco, $ 1.31 million, increased slightly from July to August.

The fall in the region is the latest sign of a slowdown in the Bay Area area real estate market, which has been spurred by rapid employment growth in the technology sector and the lack of construction . But rising house prices have outpaced wage growth, making it more difficult for residents to buy homes. According to CoreLogic, rising interest rates are also making purchases more difficult, but inventories are expected to rise in September.

"Much of the recent slowdown can be attributed to the lack of affordable inventory on the market. Unlike the frantic market of the mid-2000s, many of them struggling to buy today do not have the opportunity to finance themselves financially with the subprime and other risky financings that fueled many late-stage purchases. last cycle, "said Andrew LePage. a CoreLogic analyst, in a statement.

Over the past 30 years, home sales have increased an average of 2.3 per cent in August.

Sales of new homes, including condos, declined 40.7% from the historical average.

According to Freddie Mac, the 30-year fixed-rate mortgage has reached 4.72% this year, its highest level in seven years. The Federal Reserve also raised the benchmark interest rate between 2 and 2.25% in the third increase this year.

"Declining affordability reflects price increases and a significant rise in mortgage interest rates this year," said LePage. "While the Bay Area's median selling price increased about 12% year-over-year in August, monthly mortgage payments rose 21.5% due to higher mortgage rates. about 0.7%.