It's often been one of the priciest cities to purchase a home in, but the market in San Francisco has taken a recent dip that has seen home prices fall for the first time in four years.

A number of factors, including a slowdown in both sales and demand has led to the drop, a shocking change of pace for a city that has often been bolstered by the booming tech industry.

According to Business Insider, the Bay Area city, which the was most expensive to buy a home in during the fourth quarter, has seen a drop after several years of home prices being jacked up due a shortage of inventory and a growing demand to live there, and it appears that there is no end to the drop anytime soon.

"At some point something has to give," brokerage firm Redfin CEO Glenn Kelman told the website. "There's just been a change in the market where people feel much more careful, much more sober than they did in the fall. We started to see some of that late summer, where demand started to taper off. Houses would sit on the market an extra day, only get four offers instead of fourteen."

A number of factors have been traced to this reduction in pricing, with changes in the tech sector, as well as a shift in attitudes when it comes to home buying and the economy's recent struggles, all play a role-and because of them, it isn't likely to change and see things on an uptick again for a while.

More people tend to be living within their means these days after having a more difficult time getting approved for loans, while others are still feeling the effects of their homes being foreclosed on in recent years.

"Everybody in the real estate industry keeps expecting the market to go back to normal, but this is normal," Kelman said. "This is the way it's going to be for a long time."

Kelman also noted that a lack of inventory in the market due to homeowners not selling out of a fear they won't be able to find an affordable new home is also making it more difficult for those who want to buy to find a place they can afford, and as a result, more are choosing to rent instead.

"People just aren't as committed," he said. "If housing's too expensive, they shrug and decide to rent. If they can keep an old place, they move into a nicer one and lease out the old one."

However, despite these concerns creeping up in San Francisco, there is no reason to expect it as a sign of something bad coming for the overall national housing market, though other cities similar to San Francisco, where prices are much higher than affordability rates, could also see a decline in their own prices as well.

Tags
San francisco, Real estate