During the three months ending July 31, 2023, nearly 6% of homes sold in the New York metro area for a lower price than the original purchase — although worst off were San Francisco homeowners, where it was approximately one in every eight (12.3%) homes sold.
San Francisco’s higher proportion surpasses rates in any other major U.S. metro and is four times the national rate of 3%. San Francisco’s notable surge in homes selling at a loss is almost double the next worst metro Detroit, which came at 6.9%. Chicago (6.5%), New York (5.9%), and Cleveland (5.8%) round out the list of metro areas where the highest share of homeowners lost money on home sales.
Although homes are not liquid assets, they comprise a significant part of the average American’s net worth. San Francisco homeowners who incurred losses sold their properties at a median price of $100,000 lower than their purchase price, matching New York Metro for the highest loss among major U.S. metros.
The slowdown has taken a toll on San Francisco condo owners the most, with the median condo value plummeting by $122,500 compared to last year. Single-family homes in the area haven’t fared much better, experiencing a decline of $81,250, marking the highest drop among the 100 largest U.S. cities.
While housing markets nationwide feel the impact of elevated mortgage rates, the Bay Area’s substantial decline is exacerbated by tech sector layoffs and the remote work trend prompting relocations to more budget-friendly locales. 2022 saw California, Illinois, and New York top the list of states losing population.
While San Francisco is at the forefront of property value decline, numerous other cities have also witnessed significant price plunges. Sixteen cities saw single-family home prices slashed by over $10,000, while nine others experienced more moderate decreases. Additionally, seven cities observed that single-family home prices remained the same, which offers little relief for homeowners who made…
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