Bay Area home sales and prices dropped in August, declining for the first time in four months, the Trib reports. The number of homes sold declined 14 percent in August compared to July, although it was 4 percent higher than August 2008. At the same, time the median home price plummeted 8.9 percent from July to $360,000. It was also down 19.5 percent from a year ago.
Experts attributed the decline in the number of homes sold to fewer foreclosures on the market, and blamed the price drops to more homes being sold in outlying suburbs, where properties are cheaper. Analysts said home prices likely will stay low for a while because many homeowners are underwater on their mortgages and can't afford to sell their homes and buy new ones. In addition, the number of foreclosures could start to rise again.