Inventory is up, as the number of listings in the Bay Area are at a five-year high. Prices are stable as the median price for a single-family home in the area is$1.42 million, down 1.7% from a year ago. Moreover, the percentage of homes that are dropping their asking price continues to rise.
So why aren’t more buyers buying? One factor is the increase in mortgage rates. going from 6.6% in March to 6.8%in April. Analysts agree that as rates approach 7%, the market slows down.
Another factor is home insurance as would-be buyers deal with the rising rates or even if they can get insurance at all.