Although the volume of sales has slowed, in the nine Bay Area counties the median home price continues to climb. Last month the median price for a home rose to $651,000, which is a 19 percent increase in the the median home price this time last year. Still, I’d like to quote the most poignant paragraph in the story:

If the market dynamics are changing, they may not be reflected in DataQuick’s monthly reports, which are based on filings with county recorders’ offices and include sales initiated 30 to 60 days prior.

The 4 percent slowdown is not a good sign, particularly if the data is from one to two months ago. As more people are inclined to sell due to the high prices, the supply will increase past the tipping point and prices are bound to fall, regardless as to the spin the realtors would have you believe. The party may be coming to an end–stay tuned.

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