San Francisco Was The Nation’s Weakest Market In The First Quarter

After six years of unchecked price gains, home values finally fell in San Francisco.

Bloomberg reports that in the first quarter, single-family home prices decreased 2.5 percent from a year earlier, the worst performance among the 100 largest metro areas.

Affordability concerns may be the main driver of the decline. For years, San Francisco has drawn highly paid professionals in the tech sector, and their affluence has pushed the median home value to $1.1 million, the highest in the nation.

“We’re seeing signs that the housing market is slowing down,” said Ralph McLaughlin, chief economist for Trulia. “Homebuyers in the Bay Area have just been stymied by affordability fatigue.”

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