(Daily Mail) The US housing market is currently in the midst of an unprecedented decline in home prices – with properties in some cities selling for hundreds of thousands of dollars less than they were just a year ago.
The concerning data was revealed last week by Redfin, and marks a significant shift in the American real estate landscape following a historic surge seen during the Covid-19 pandemic.
Two cities in the Bay Area – Oakland and San Francisco – are among the worst offenders when it comes to decline by dollar amount, a phenomenon researched said is fueled in part by diminishing demand and the looming possibility of a recession.
Other notable declines occurred in major metros like Austin, Boise, Salt Lake City, Seattle, and Los Angeles – all of which saw their median home price shed at least $60,000 since April of last year.
San Francisco and Oakland both saw price drops into six figures with the median value decreasing by $220,000 and $174,000 respectively.
The US housing market is currently in the midst of an unprecedented decline in home prices – with properties in some cities selling for hundreds of thousands of dollars less than they were just a year ago, new data has shown
Somewhat unexpected, the numbers unveiled San Francisco as one of of the worst offenders when it came to decline by dollar amount, as a home on average today will run you roughly $220,000 less than it did this time last year
The locale that has seen the sharpest decline in home price over the past year in terms of percentages, however, is located across the Bay in San Francisco – with a home in crime-ridden Oakland costing $174,500 less than this time in 2022
‘Pandemic boomtowns and pricey coastal markets are seeing historic home-price declines,’ the report published on May 22 discerned, before noting nationwide, the median home sale price has dropped nearly $18,000 – the most since January 2012.
In addition, researchers who looked at more than 91 American metro areas with populations of at least 750,00 observed the decline marked the third month of declines following roughly a decade of increases.
The steepest declines, though, were recorded in California markets commonly thought to be expensive – as well as towns that experienced an uptick in demand during the pandemic.
Such towns, including prime pandemic hotspot Austin, recorded dramatic losses that also neared the six-figures – with the Texas town where Elon Musk’s Tesla’s recently relocated to losing $85,000 in value since April.
In terms of percentages, the decrease amounted to 15.3 percent – equity that researchers revealed said has all but evaporated over the past year.
When taking into account overall he drop was the second most pronounced out of all the metropolitan areas analyzed by the real estate firm – bested only by Oakland, whose decrease erased 16.1% of listed homes’ overall median value.
The city sporting the third worst reduction rate was Boise, Idaho, are selling for $80,000 less than they were this time last year.
The percentage drop also came as nearly identical to the one associated with the Texas capital, at 15.1 percent. Both sport average listing prices around $500,000 – a number well under the half the average price of homes on the West Coast.
Last year, an analysis determined that both cities had the most overpriced real estate in the country, propelled by post pandemic demand.
Pricing history for the locales showed 2022 median homes should cost around $299,202 in Boise, but were still selling for 72 percent higher at $516,548.
Austin homes, meanwhile were 67.70 percent overpriced, the study from Florida Atlantic University found.
The steepest declines were recorded in California – but also in towns that saw an uptick in demand during the pandemic. Included in this category is Austin (pictured), which saw it mean home price decrease dramatically, by roughly $85,000
The city sporting the third worst reduction rate was Boise, where homes – similar to the case in Austin – are selling for $80,000 less than they were this time last year
With this in mind, researchers’ polling efforts found the historically costly locale surrounding San Francisco sported the fourth-worst rate for its mean sale price – despite its drop being by far the most pronounced when measured in dollars. The city’s skyline is pictured here
The distinction of fifth-most rapid percent decline was achieved by Salt Lake City, a locale whose downtown has seen a 40 percent spike in activity since 2020. Per the data from Redfin, it appears that demand is coming back to earth – with it costing $60,000 less to buy a home
Other metropolitan areas to record decreases over the past year according to Redfin included Seattle and Los Angeles – both of which boast a cost of living well above the national average
‘Pandemic boomtowns and pricey coastal markets are seeing historic home-price declines,’ the report published on May 22 discerned, before noting nationwide, the median home sale price has dropped nearly $18,000 – the most since January 2012
Researchers’ polling efforts found the historically costly locale surrounding San Francisco sported the fourth-worst rate for its mean sale price – despite its drop being by far the most pronounced when measured in dollars.
The distinction of fifth-most rapid percent decline was achieved by Salt Lake City, a locale whose downtown has seen a 40 percent spike in activity since February 2020, according to a May report.
As is the case with other pandemic boomtowns, that increase led to higher housing demand and, ultimately, more costly homes.
Per the new data from Redfin, it appears those prices are now coming back to earth – with it now costing $60,000 on average to purchase a home in the rising Utah city.
Other metropolitan areas to record decreases over the past year according to Redfin included Seattle, Los Angeles, Philadelphia, and Washington, DC – all of which boast a cost of living well above the national average.
Another characteristic the lived-in districts share is a high rate of crime – rates that worsened in double-digits during the pandemic and, in most cases, have continued to persist.
Higher mortgage rates have also played a part in the decreases seen in these heavily populated areas – as they continue to deter both buyers and sellers from moving forward with potential transactions.
As a result, new listings, on average, dropped 26.1 percent year over year – the largest decline on record aside from April 2020, when the onset of the pandemic effectively brought the housing market to a standstill.
One characteristic the lived-in districts share is a high rate of crime – like the one seen in San Francisco (pictured). Those rates hit double-digits during the pandemic and have since persisted
Increasingly popular Miami neighbor Fort Lauderdale, meanwhile, owned the distinction of boasting fastest-rising home sale price, thanks to an eyewatering 10.7 increase, meaning residents of the coastal city are paying roughly $50,000 for a place than they were last year
In addition, researchers who looked at more than 91 American metro areas with populations of at least 750,00 observed the decline marked the third month of declines following roughly a decade of increases – marking the new data’s significance
