When you think of out-of-control housing markets tilted towards the sellers, you immediately think of San Francisco. While it’s hard to say those days of sky-high property values are over, Zillow thinks the market might be cooling off, especially in certain neighborhoods. Taking into account home value appreciation, inventory, and incomes, they’re predicting a half-percent drop in SF home prices within the next year.
Within the city, Zillow sees the Marina District as the place with the most potential to see price drops. They predict a 2.9 percent drop in the neighborhood, though that probably won’t make it that much more affordable. The average price there right now is $1,957,900.
One part of town that buyers won’t see any relief in is Bernal Heights. The current average price checks in at $1,288,000 and that’s expected to rise another 1.3 percent in the year to come. Great news for homeowners and sellers—not so much for buyers.