1 big thing: SF home sales still down but moving

Home sales were down 32.5% year over year in the San Francisco metro area, per RE/MAX's February report.

Why it matters: In 2022, potential buyers were desperate for more inventory. Now, homes are hitting the market but people can't afford them.

What's happening: Rates for a 30-year loan were at 6.09% in early February, and shot up to 6.65% by the end of the month, per Freddie Mac.

By the numbers: The outlook here depends on your timeframe and your budget.

• Compared to last year: Prices dropped along with sales. The median price here fell by 12.7% last month over February 2022. That's the second-highest drop in 50 markets surveyed (behind Bozeman, Montana).
• Compared to last month: Prices are creeping up, and sales are faster. Houses stayed on the market for only 33 days this February compared to 43 days in January, according to RE/MAX data.

Zoom out: Because there's less competition right now, buyers don't have to front as much cash as they did a year ago, Axios' Emily Peck reports.

Yes, but: Zillow numbers show that prices for the least expensive tier of houses haven't dropped as dramatically as for the most pricey, according to the SF Chronicle.

What they're saying: "Buyers are being more picky, they're not going to the crazy prices we were seeing in past years," David Cohen, founder of City Real Estate, told Axios.

• "This time last year, people were rushing to get their homes on the market for fear of interest rates going up, which we then saw. Buyers were rushing to get into homes for the same reason."

Between the lines: Some areas around the East Bay and Pacifica, which have lower home prices than San Francisco, are seeing more competition among buyers, Cohen says.

What's next: Mortgage rates dropped nearly a quarter point this month, which means buyer activity will likely pick back up.