Residents of Bay area are no longer in a hurry to buy homes now that the once-sizzling housing market is taking a breather. Buyers are on the watch out whether prices will drop a little bit.

According to a report released Wednesday by DataQuick Information Systems, Bay Area home prices have continued to increase - the median price rose 6.1 percent from last May to a record $631,000. The year-over-year growth in May home prices was the lowest since May 2003. According to DataQuick, the 9,064 home sales in May marked the slowest May for sales since 2001 and the 14th consecutive month in which sales declined on a year-to-year basis.

On a year-to-year basis, Alameda County saw a 12.7 percent sales drop while Contra Costa County saw a 20.5 percent decline. Homes that do sell are priced very competitively and show well. There is uncertainty about the market after that, tied to broader economic trends.

The high number for sale give buyers more time to make a decision, which can lead to slower sales. While the Bay Area saw a steep drop in home sales compared with a year ago, the news was even worse in San Joaquin County, which had a 38.5 percent decline. And unlike the Bay Area - where month-to-month sales increased 8.4 percent - the county also saw volume decline in May from April. Also, the number of homes that have sold have decreased.

By M. Sese
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