No Housing Market is Cooling Faster Than the Bay Area
California and the West in general are leading pricing downward, Redfin reported.
The San Francisco Bay Area is “cool,” but not in the way its homeowners wish.
As mortgage rates stay above 5% and the stock market slides, more would-be buyers are being priced out of the San Jose, Oakland and San Francisco markets, which are cooling faster than any in the US, Redfin reported.
This represents an overall trend for the western US, where all 10 in the top 10 are located.
Mortgage rates nearly doubled in the first half of the year, reaching nearly 6% in June. That caused the monthly mortgage payment for a typical homebuyer to surge 45% year over year to $2,459 in June.
Soaring Prices of the Pandemic are No More
This, after record-low mortgage rates and remote work helped the housing market in general soar to all-time highs during the pandemic.
San Francisco Redfin agent Joanna Rose said in prepared remarks, “In the early spring, every home was selling over its asking price with multiple bids. Then the number of people attending open houses dropped from 20 to two, and now some homes are sitting on the market for over a month and selling for under asking price. Supply is starting to pile up.”
Sacramento and Stockton also represent California on the list of fastest cooling markets in the country.
Rose said the “good news” for buyers is that now they could get a home for $100,000 or $200,000 less than a few months ago.