Find the latest episode of "The Uncertain Hour" here. Listen

Home sales fall in pricey California markets, but prices keep going up

Ben Bradford Nov 1, 2018
HTML EMBED:
COPY
FREDERIC J. BROWN/AFP/Getty Images

Home sales fall in pricey California markets, but prices keep going up

Ben Bradford Nov 1, 2018
FREDERIC J. BROWN/AFP/Getty Images
HTML EMBED:
COPY

September home sales dropped more than 10 percent in two of the nation’s priciest housing markets, the San Francisco Bay Area and Southern California, according to new data from the real estate analysis firm CoreLogic.

“In fact, for the month of September, this was the weakest home sales report in about 11 years,” said CoreLogic’s chief economist, Frank Nothaft.

Fewer people buying homes might suggest less demand, but the firm found home prices continued to go up, even as sales slipped. 

“Demand is actually increasing,” said Susan Wachter, real estate professor at the University of Pennsylvania. “Millennials still have not purchased their first home and they want to purchase their homes.”

The real cost of homebuying is even higher than prices suggest, because mortgage interest rates are also increasing.

“The housing market crunch is going to get worse,” Wachter said.

Marketplace is on a mission.

We believe Main Street matters as much as Wall Street, economic news is made relevant and real through human stories, and a touch of humor helps enliven topics you might typically find…well, dull.

Through the signature style that only Marketplace can deliver, we’re on a mission to raise the economic intelligence of the country—but we don’t do it alone. We count on listeners and readers like you to keep this public service free and accessible to all. Will you become a partner in our mission today?

Your donation is critical to the future of public service journalism. Support our work today – for as little as $5 – and help us keep making people smarter.