Home News The San Francisco Bay Area Leads the U.S. Housing Market Slowdown

The San Francisco Bay Area Leads the U.S. Housing Market Slowdown

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Many US housing markets have witnessed a slowdown in response to rising and predicament of mortgage rates on Wall Street, with Northern California being the most affected, according to a Redfin report on Friday.

Of the top 10 markets that have cooled most rapidly during the three months from February to May, five are in northern California, including San Jose, Oakland, San Francisco, Sacramento, and Stockton, three of which are in the Bay Area. It was in Redfin. Said.

Seattle-based brokerage firms track the housing market in the 100 most populous metropolitan areas of the United States. Market cooldown rankings are based on several factors, including price, supply, pending sales, sales-to-list ratios, and year-over-year changes in the average time it takes a home to sell. Data was collected from February to May.

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Joanna Rose, a Redfin agent in San Francisco, said in a report, “Last month, the housing market changed significantly because higher home prices make homes even more expensive than they used to be.” increase. “At the same time, the stock market is volatile, so fewer people can afford an expensive home.”

Demand for homebuyers fell most sharply in San Jose, with inventories piled up by the end of May. According to Redfin, the number of homes for sale increased by 10% compared to May 2021, while supply in February decreased by 43%.

In addition, pending sales for the entire metro fell by 21.3%. According to the report, the share of homes sold in two weeks decreased by 5% in May, compared to a 22% increase in February.

Other than Northern California, other markets that have cooled faster than anywhere else in the United States include Seattle. Boise, Idaho; Denver; San Diego, California; Tacoma, Washington.

Another sign of an imminent market chill in the San Francisco Bay Area is a sharp drop in prices in June, according to another report released by Compass on Thursday.

Median selling prices in the region rose about 18% each year in April and slightly above 10% in May. Last month, year-over-year price increases fell to just 2% to 3%, according to the compass.

Patrick Carlyle, Chief Market Analyst in the Compass San Francisco Bay Area, said: Report.


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