When considering a purchase, home buyers in high-end markets tend to look at the monthly cost of housing -- what their paycheck will afford each month -- rather than rising median prices. Low interest rates keep buyers looking.

The typical monthly mortgage payment for Bay Area buyers was $2,341 in August, down from $2,361 in July and up from $2,092 a year ago, DataQuick reported.

"The fed rate hikes actually helped lower rates on home loans. A move to tighten or hike rates by the Fed is designed to slow inflation, and tempering inflation is very good news for bond holders or mortgage lenders. With inflation reduced, the buying power of their future returns will face less erosion from the effects of inflation," Sonoma County real estate and loan agent Ginger Hopp reported to RealtyTimes.com's Market Conditions Report.

"The condo median just broke the $400,000 barrier (in Silicon Valley). It's almost impossible to find a single-family detached home at that price. First-time home buyer programs do not apply to price points for single-family dwellings. That could help drive condo prices," said John V. Pinto, a Realty World broker in San Jose.

A total of 12,674 new and resale houses and condos were sold in the nine-county region in August, up from 12,488 for August last year, DataQuick reported.

DataQuick said market distress indicators were largely absent in August in the San Francisco Bay Area where foreclosure rates are low, down payment sizes are stable and a slight increase in flipping (buying and quickly selling for a profit) rates earlier this year has now leveled off.

"The strong sellers market continues in the city of San Francisco. There are many buyers in the market attracted by relatively low interest rates and the opportunity to own a home in one of the best cities in the world," Jane Mermelstein of Zephyr Real Estate reported to RealtyTimes.com's Market Conditions Report.