Virtually across the Bay Area, Q3 median sales prices retreated dramatically from their spring peaks. Part of this was due to seasonal trends, but part of the decline was clearly due to changing market conditions prompted by shifts in interest rates, inflation, stock markets, and consumer confidence. 

On the supply and demand side, it appears that after the big drop in demand in early-mid summer, conditions have mostly stabilized: generally speaking, sales numbers are no longer appreciably dropping.

When looking at recent market changes, it is important to remember how overheated the market was in 2021 and early 2022 – many quarter-to-quarter, and year-over-year comparisons are distorted by the unusual (sometimes frenzied) conditions that prevailed then. It is also wise not to jump to definitive conclusions based upon a single quarter’s data: The economy and real estate market are still in a period of adjustment.