San Francisco’s real estate market experienced a 7% home pricing decline year-over-year, from September 4th, 2021 to September 4th, 2022 as outlined in a recent report by Redfin.
As the Labour Day long weekend came to a close, mortgage rates had increased again, affecting real estate activity throughout the San Francisco Bay Area and the rest of America, according to the report.
While the theme of “real estate” and “Homebuying” begins to experience variations of decreasing popularity for the average American due to increased mortgage rates, steady housing prices, and a continued lack of inventory across North America, sellers began to decrease their home prices at a near a record high while home-touring activity slowed.
As a result of decreasing demand for homes, recent home sales sold 0.3% below its final list price following a year and a half of the average home selling above list price, according to the report. The number of homes selling below list price experienced the biggest increase since February 2021 while the sale-to-list price ratio also decreased to its lowest level since March 2021, discouraging homeowners from entering the market. In return, the number of new listings decreased 18% year-over-year.
“The housing market always cools down this time of year, but this year, I expect fall and winter to be especially frigid as sales dry up more than usual… Thanks largely to mortgage rates near or even above 6%, potential homebuyers and sellers are focusing on the back-to-school season and enjoying the last days of summer rather than getting into an uncertain market. It may feel like you are playing roulette when it comes to timing when to lock your mortgage rate, but just remember you can refinance when eventually rates do turn down.” – Redfin Chief Economist Daryl Fairweather.