The US housing market is experiencing a significant decline in home prices, with some cities seeing properties selling for hundreds of thousands of dollars less than a year ago. San Francisco and Oakland are among the worst offenders, with median home prices dropping by $220,000 and $174,000, respectively. The decline is fueled by diminishing demand and the looming possibility of a recession. The pandemic has also affected the market, with pandemic boomtowns and pricey coastal markets seeing historic home-price declines. The nationwide median home sale price has dropped nearly $18,000, and the decline marks the third month of declines following roughly a decade of increases.
In line with recent data, the US housing market is experiencing an unprecedented decline in home prices. This marks a significant shift in the American real estate landscape following a historic surge seen during the Covid-19 pandemic. Redfin, the real estate brokerage company, revealed that properties in some cities are selling for hundreds of thousands of dollars less than they were just a year ago.
The report published on May 22nd discerned that “pandemic boomtowns and pricey coastal markets are seeing historic home-price declines.” Nationwide, the median home sale price has dropped nearly $18,000 – the most since January 2012. Researchers who looked at more than 91 American metro areas with populations of at least 750,000 observed the decline marked the third month of declines following roughly a decade of increases.
Two cities in the Bay Area, Oakland and San Francisco, are among the worst offenders when it comes to decline by dollar amount. This phenomenon is fueled in part by diminishing demand and the looming possibility of a recession. San Francisco and Oakland both saw price drops into six figures with the median value decreasing by $220,000 and $174,000 respectively.
Somewhat unexpectedly, the numbers unveiled San Francisco as one of the worst offenders when it came to decline by dollar amount, as a home on average today will run you roughly $220,000 less than it did this time last year. The locale that has seen the sharpest decline in home price over the past year in terms of percentages, however, is located across the Bay in San Francisco – with a home in crime-ridden Oakland costing $174,500 less than this time in 2022.
The steepest declines were recorded in California markets commonly thought to be expensive – as well as towns that experienced an uptick in demand during the pandemic. Such towns, including prime pandemic hotspot Austin, recorded dramatic losses that also neared the six-figures – with the Texas town where Elon Musk’s Tesla recently relocated to losing…
It is important to note that the decline in home prices is not limited to expensive coastal cities. Major metros like Austin, Boise, Salt Lake City, Seattle, and Los Angeles all saw their median home price shed at least $60,000 since April of last year.
This decline in home prices is a cause for concern for homeowners across the US. The pandemic has brought about economic uncertainty, and the looming possibility of a recession has further compounded the issue. As the market continues to shift, it is important for homeowners to stay informed and make informed decisions about their investments.
To end on a positive note, the US housing market is currently experiencing an unprecedented decline in home prices. The decline is not limited to expensive coastal cities and is fueled in part by diminishing demand and the looming possibility of a recession. Homeowners should stay informed and make informed decisions about their investments as the market continues to shift.