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Bay Area Home Sales Slow—Affordability to Blame?

An article in the San Francisco Chronicle this morning reports that both Bay Area home sales and prices are down, based on a report from CoreLogic. According to the report, the median price for a home last month was $650,000, and that's down 1.3 percent. The number of homes sold (8,062) is down 11.7 percent from July, although that's a 4.5 increase from August 2014.

A graph of stock market fluctuations these days looks like a seismograph reading, but CoreLogic analysts say that's not the problem. Instead, they claim affordability is likely the factor behind the drop.

Other interesting statistics included in the report: Homes sales hit a 10-year high in July 2015; absentee buyers (investors) purchased 17.9 percent of Bay Area homes sold in August; cash buyers made up 21.3 percent of last month's sales (it was 20.1 percent in July).

Does this represent a true change in the market or merely a push of the pause button? In the article, analysts say it's too early to tell.

· Bay Area Home Sales, Prices Drop in August [San Francisco Chronicle]
· Former Home of Metallica Guitarist Gets Serious About Selling With New Look, $11.85M Price [Curbed SF]