The California Association of Realtors estimates that the median price of California home will drop 8.8 percent to $758,600 in 2023. Both Zillow and Corelogic expect San Francisco pirces to drop approximately 3.6 percent next year. This would be the largest drop of the top 20 metro areas in the country.
Inventory is expected to remain low as home-buyers are reluctant to put their homes on the market dues to the uncertain economy, inflation, and the sizable loss of tech jobs in the Bay Area.
Most analysts see declining prices as a necessary adjustment to the overheated Bay Area market and not the sings of an impending crash.