BAY AREA — Bay Area home prices have been dropping for several months, but today's real estate news is jaw dropping. Home sales plunged 20 percent in December 2018 compared to the previous December, bringing totals down to levels last seen 11 years ago at the start of the housing crisis in 2007. Those figures were released by CoreLogic, the real estate information firm.

Experts blame the slowdown on a variety of factors, notably affordability after years of rising prices outpacing wage increases. "Last month's sharp drop in home sales stands out in several ways," said Andrew LePage, research analyst with CoreLogic. "This drop in activity reflects a variety of factors. Mortgage rates hit a 2018 high in November, affecting December closings, and stock-market volatility created an additional headwind in high-end markets. Meanwhile, some would-be buyers remain priced out or unwilling to buy amid concerns that prices have overshot a sustainable level."