According to a new report, the house price drop in July was the biggest in six months, down 0.77% from June. The decline is the largest one-month drop since July 2011, according to Black Knight, mortgage software and data analytics firm. In contrast, July 2010 was the second worst month since 1991, with a 0.9% decline. This sharp decline occurred despite the sharp rise in mortgage rates, which made the already expensive housing market even less affordable.
San Francisco home prices fell $115,000 or 5.7% in the last 30 days
The housing market is cooling, and home prices in San Francisco and other California cities dropped over the past 30 days. In June, home prices in San Jose and Sunnyvale dropped the most. The average single-family home value in these metros fell 4.5%. In San Francisco-Oakland-Berkeley, home values dropped 2.8% from June to July.
Rising mortgage rates have squeezed out home buyers in the Bay Area. The stock market collapse has drained the wallets of tech workers. Some have had to lay off hundreds of workers. The shortage of available work has slowed San Francisco home prices.
According to a recent report by Compass Inc., San Francisco home prices dropped $115,000 or 5.7% in the past 30 days. These are the steepest drops since 2012. Meanwhile, homes are sitting on the market longer, taking longer to sell. There were also fewer contracts signed, and fewer homes sold over their list price.
Home prices continue to fall. A recent consumer survey conducted by the California Association of Realtors found that few Californians feel confident about their ability to buy a home in the next 12 months. In addition, experts say that the Fed will raise interest rates in September, which will reduce buyer affordability. As a result, home prices in California fell in July despite strong employment and growing listing inventories.
Meanwhile, home prices in the Bay Area declined in every county except Sonoma and Napa. While the Los Angeles Metro area and San Francisco experienced the biggest drops, prices in other areas in the Bay Area dropped at a slower pace. Home values in California’s six-county region declined 1.3 percent.
San Francisco home prices fell 7% in the last 30 days
San Francisco home prices dropped 7% in the past 30 days, a drop far worse than any other area of the Bay Area. Interest rates were also high and the exodus of tech workers weighed on the market. The median single-family home price in San Francisco fell to $1.4 million from $1.5 million a year earlier. However, the median home price nationwide rose 7%.
The median home price in San Francisco has fallen by 7% over the last 30 days, the most significant decline since February 2018. In fact, San Francisco home prices first fell at that level in February 2018. The median price in San Francisco fell 7% in the last month of 2018, a record low. The median price is usually higher during the winter, but home sales in July and August were far lower than they were a year ago.
This trend is not surprising, as San Francisco has had exceptionally low inventory and an explosion in buyer demand. Despite the shortage of inventory, housing prices are expected to increase 8.6% over the next 12 months. With fewer homes for sale, San Francisco foreclosures are also expected to rise.
The Bay Area housing market may be cooling more quickly than other regions. The number of active home listings decreased nearly 200%, suggesting the region may be less overvalued than other parts of the country.
San Francisco home prices fell 5.7% in the last 30 days
The price of a home in San Francisco has fallen by more than five percent in the last 30 days, according to the latest data from the Real Estate Institute. In the same time period, home sales nationwide declined by nearly two percent, the steepest decline since 2008. As a result, the Bay Area home market is in need of a price reduction to attract buyers in July.
The decline in home prices was felt across the Bay Area during the second half of the year, but prices in one county saw gains. The declines were more pronounced in San Francisco, Marin, and Alameda counties, while prices in Napa and Contra Costa counties were down only a bit.
The recent decline in San Francisco home prices could be a sign of an overheated housing market. The Bay Area saw similar lows in 2006-2007, but the pressure in San Francisco is spreading across the surrounding markets. A slowing in demand in San Francisco is an important indicator for the housing market’s future.
This year’s housing market recovery is showing signs of life after a prolonged slump. Home prices are rising again, albeit more slowly. Although homes are taking longer to sell, anything less than thirty days is considered a hot market. In August, the average price of a home sold in San Francisco fell to under two million dollars. This is down $366,727 from the peak in April 2022. Fortunately, the median price is holding steady at around $2 million.