US: San Francisco Home Prices hit Record Lows since Jan 2012

The American housing market has experienced a significant downturn in the past few months, with record drops in home prices across several states, according to real estate companies' data.

The American housing market has experienced a significant downturn in the past few months, with record drops in home prices across several states, according to real estate companies' data. This decline follows nearly a decade of growth, with April marking the third consecutive month of decline in home prices across the country compared to the same period in 2022.

One of the most significant drops occurred in San Francisco, where the median house price is now $220,000 lower than it was in 2022, wiping out 13.4% of equity. Oakland also saw a 16.1% decrease in house prices, while Austin, Boise City, and Salt Lake City noted respective drops of 15.3%, 15.1%, and 10.9%.

US: San Francisco Home Prices hit Record Lows since Jan 2012 ph: instagram@thekrishnanteam

These downturns reflect macroeconomic factors such as higher mortgage rates and bearish outlook, besides local factors reversing some of the major bull runs seen over the past few years. It is noteworthy that the discounts observed in cities like San Francisco, Oakland, Austin, and Boise are four to five times higher than the national average.

The decline in home prices is also affecting tech cities and pandemic boom towns, where homes that didn't sell were mostly located. Along with the decline in prices, there has been a significant decrease in the number of closed sales or transfers of ownership in San Jose, San Francisco, Stockton, and Oakland.

Experts predict that this trend may continue for a while before stabilizing, which means many buyers can benefit from the dip in prices. However, it should be noted that the housing market varies greatly by location, and potential homebuyers need to evaluate the situation carefully. Ultimately, this downturn represents an opportunity for some while posing challenges for others, especially those who bought houses at the peak of the market.