San Francisco’s Homeowners Selling at a Loss
Why Homeowners are Selling at a Loss
San Francisco’s share of homeowners selling their properties at a loss is the highest of any major metro in the country and continues to rise. As reported in an analysis by Redfin, the total value of homes in San Francisco has fallen by around $60 billion since last summer. This is due in part to its status as one of the most expensive home markets in the country, as well as the impact of remote work and layoffs in the tech sector.
Impact of the Pandemic
The pandemic hit the Bay Area real estate market harder than the rest of the country, and while prices have rebounded from the nadir seen in 2022, they have not yet recovered to peak pre-pandemic pricing. That’s in contrast to much of the country, As reported in market analyst Patrick Carlisle.
Limited Properties Coming onto the Market
Additionally, the “mortgage lock-in” where current homeowners are disincentivized from selling and purchasing a new home because of concerns about higher interest rates means that only a limited number of properties are coming onto the market. The majority of homes for sale in San Francisco—roughly 70%—are condos and condo-like properties.