SFCED | San Francisco Center for Economic Development

San Francisco Housing Prices Finally Are Starting to Drop

Sales prices decline for the first time in four years.

With new homes being advertised as starting in the low millions, a 110-year-old decomposing wood shack listing for $350,000, and a desperate designer paying $508 a month to live in a box in someone else’s apartment, San Francisco has been the poster city for real estate prices unchecked. Tech money has fueled a demand for space that has pushed prices to the highest in the country.

But things may be taking a turn toward sanity. According to online real estate brokerage Redfin, the median sales price of a house in San Francisco fell between March 2015 and March 2016. That was the first year-over-year drop since 2012. The median final sales price of a home, which had jumped by 15% throughout 2015, dropped 1.8% to $1,042,500 in March, compared to the same time last year. The number of homes sold dropped by 22.1%, showing that fewer people bought homes this March than in the same period in 2015, suggesting that demand is slowing.

Read more: Fortune San Francisco Housing Prices Finally Are Starting to Drop

SF Housing Prices Finally Starting to Drop