House Prices Are Under Pressure in the Bay Area

Pedestrians stand in front of Victorian homes and the downtown skyline in San Francisco.

Photographer: David Paul Morris/Bloomberg

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In the two most expensive U.S. real estate markets, both in California’s Bay Area, home values declined in July.

The price of a typical home slumped 10.5% from the same month last year in San Jose and fell 1.1% in San Francisco, according to a report issued Friday by Zillow. A year ago, home values were growing 24% annually in San Jose -- a 34.5 percentage point price swing. In San Francisco, the difference was 10.5 percentage points.