Bay Area home prices are slowing and rents are going up, an indication that the housing market has entered a post-boom era in which buying a home no longer guarantees a quick profit.
Home prices inched to another record in June, but sales in the Bay Area continued to slow last month. Prices increased at their slowest pace in more than three years.  In Santa Clara County, 2,562 homes were sold this June, about a 20.4 percent drop compared with 3,220 in June 2005. The median price was $684,000, 6% higher than the median price of $645,000 during the same period last year. San Mateo County shows 765 homes sold in the month of June 2006, compared with 917 a year ago. 16.6% reduction in sales. The median price was $759,000, compared with $752,000, 0.9% increase.
Below are the numbers for single family homes in Santa Clara and San Mateo County.
 

 
According to RealFacts, Q2 occupancy rates increased across the board lead by San Jose-Sunnyvale-Santa Clara.  Rents followed occupancy, showing gains across the board also to a 9.1% annual rent growth, and occupancy stabilized at around 96%. San Francisco-Oakland-Fremont had 5.9% rent growth and 96.1% occupancy.
 Mortgage Updates
Mortgage rates have increased. The typical monthly mortgage payment that Bay Area buyers committed themselves to paying was $3,183 in June 2006. That was up from $3,091 in May 2006, and up from $2,651 for June a year ago. Adjusted for inflation, mortgage payments are 25% higher than they were at the peak of the prior cycle sixteen years ago.
Indicators of market distress are still largely absent. The use of adjustable-rate mortgages has decreased in the last half year. Foreclosure rates are coming up from last year’s low point, but are still below normal levels. Down payment sizes are stable and there have been no significant shifts in market mix, DataQuick reported.