Home prices plummet in California, Oregon

Zillow Real Estate said Tuesday that sales in California’s San Francisco Bay Area were down 13.6 percent compared to last year, while sales in Oregon were down 7.9 percent compared with last year.

The company said its residential sales in the Bay Area fell 3.6 million in March from a year earlier.

In March, sales were up 9.6%. 

Sales in California and Oregon fell 2.5 percent and 4.6 percentage points, respectively.

The Bay Area’s housing market was in “full-blown freefall,” Zillower said in a statement. 

“While the housing market remains robust in the Golden State, this was not due to any new developments or price drops in San Francisco.

The market continued to face major challenges from oversupply, which we expect to be solved over the next few years,” Zilower said. 

Zillow said its consumer-focused index was up 0.7 percent in March. 

The company said that sales growth in the Midwest and South was up 1.3 percent and 0.5 percentage points in March, and it expects to see sales growth throughout the year. 

 Zilower attributed the market’s slow recovery to weak housing supply, rising housing prices, and high levels of unemployment. 

A number of factors are behind the slow pace of home sales in San Diego County, the company said.

The region is still grappling with an economic recession and the impact of a $7.3 billion pension shortfall that could be triggered by the California state budget crisis, the county said.