Bay Area home prices rise at slower pace in July; sales tumble

Home prices in the expensive San Francisco Bay Area rose 9.8% in July from a year earlier, the smallest increase in more than two years, a research firm said.

The median home price in the nine-county region was $617,000 last month, a 0.2% dip from June, CoreLogic DataQuick said Thursday.

The increase from July 2013 was the first time prices failed to rise by double-digits since May 2012 -- evidence that the housing slowdown has touched even the tech-money-flush Bay Area.

Bay Area home sales fell 9.3% from July of last year, a decline driven by high prices and few homes for sale, CoreLogic DataQuick said.

Unlike Southern California, inventory in the Bay Area remains extremely tight. If homes continued to sell at their June pace, there would be no homes left for sale in 2.4 months, according to the California Assn. of Realtors.

That compares with a four-month supply in the L.A. metro area during June and the six-month supply that is considered a balanced market between buyers and sellers.

Want more housing news? Follow me on Twitter @khouriandrew