The Gulf Shore condo market has been a hot seller in the Bay Area for years.
But as of last month, condos in Galvez have dropped more than 60% in value compared to just a few years ago.
Galvez has seen some condo towers fall and many have seen a drop in the number of units available.
In this Sept. 28, 2018 photo, condos for rent in the West Village condo district are seen in San Francisco.
The number of condos available in the city has dropped more in recent years than in previous decades.
A condo owner in the area told The Associated Press she was not surprised at the condo market drop, which came as condo prices were climbing.
She said the trend started in 2016 when condos in the condo district were so expensive that they became a luxury item for the elite.
She expects the trend to continue, as the market continues to rise and condo prices continue to go up.
“You get people who don’t want to be a condo owner anymore and you get a lot of people who want to move to the suburbs,” said Amy Hwang, a condo and apartment broker who has lived in Galvegas since 2003.
She says the condos have seen price increases over the years and they have a hard time keeping up with demand.
“There’s been a lot more people who are buying condos and apartments.
They’re more expensive than condos in other areas,” Hwang said.
The average price of a condo in the Gulf Shore area is now $1.1 million, compared to $1 million in 2014.
Some people in the region who are trying to sell their condos say they have found buyers who can pay more than they can afford.
In some cases, condos are being sold to families with children.
A woman who identified herself only as Ms. F said she sold a condo last month for $8 million.
She and her husband were in the process of selling their condo when the market took a dive.
“We couldn’t afford to do it, and I just had to sell it,” Ms. M said.
“I was hoping that somebody else would buy it for me, but I didn’t have the money.”
Some people are struggling to make ends meet while others have built their wealth by investing in real estate.
“It’s really hard to find a job right now because the market has gone up so much,” said Jennifer Lee, a sales agent for Real Capital Group.
“People are looking for opportunities that are better than what they were before.”
The condo market is not the only area where prices are dropping.
The San Francisco Bay Area saw a significant decline in the amount of condos and apartment units available in San Jose in 2016.
That year, there were more than 1.6 million condos available, compared with 2.5 million units available last year.
And in San Mateo County, the condo vacancy rate was 8.2%, down from 10.8% a year ago.
In addition, condos have been the focus of a series of condo-related high-profile fires.
One of those fires in November 2018 killed two firefighters in San Leandro and another firefighter in Oakland, killing one.