The San Francisco housing market is always hot and you'd still be hard-pressed to find a home for under a million dollars. However, housing prices have dropped significantly since their pandemic peak in October 2022.
According to Redfin, the median monthly home payment in the city is now $8,496, down from $9,973 last Fall. This means that, on average, homebuyers would pay $18,000 less today for the same home.
This is the biggest housing price decline of all of the most populated areas in the country. It's more than double the average national decline of 7%.
There are a few reasons for this, notably the rise of remote work which enabled people to move out of San Francisco and into more affordable areas. The tech sector has also seen significant layoffs, which could also contribute to the housing market's steep decline.
In addition, the city's housing market was so expensive that it had a lot of room to fall.
Other tech hubs such as San Jose, Oakland, and Seattle have also seen some of the most significant housing price declines in the country, although not as notable as San Francisco.
So, while the Bay Area housing market remains out of reach for many, Redfin describes this as a time of opportunity for buying in the area.
Now that rates are down, a lot of Bay Area house hunters are starting to tour homes and make offers again. We’re in a sweet spot where prices and rates have dropped enough to make a meaningful difference in housing payments but there’s still less competition than there has been for the last few years.
According to Redfin, the housing market remains relatively slow at this point, so it may be as much of a buyer's market as San Francisco will ever have.
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