Last December, Zillow forecast that home values in the Bay Area were likely to decline 3.6 percent. Their latest projections reduce that percentage to 2.7 percent even in the face of continuing tech layoffs, the Silicon Valley Back collapse and the First Republic crisis (one of the leading providers of mortgages in the area.

Analysts explain this fairly optimistic forecast by citing the resurgence of demand as the market heads into a prime selling season.

Even with the change in percentage, San Francisco’s 2.7 percent decline remains the largest among the top 20 metros in the U.S.