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You may be able to purchase your dream home in California for a slightly lower price than before, according to a new study.
Researchers at Black Knight Inc, a technology company that analyzes mortgage lending data across the United States, found that home prices in six California cities have decreased from their 2022 peak prices.
Those cities were: San Francisco, San Jose, Sacramento, San Diego, Los Angeles and Riverside.
San Francisco and San Jose experienced the greatest price decline, falling 13% and 12.7%, respectively. Sacramento, San Diego, Los Angeles and Riverside all experienced price declines between 8% and 12%.
Nationwide, Black Knight researchers found that 14 out of the 50 largest markets in the U.S. have seen declines of 6% or more from their 2022 peaks.
This is where home prices have fallen the most (source: Black Knight Inc.)
1. San Francisco: 13% price decrease
2. San Jose: 12.7% price decrease
3. Seattle, Washington: 11.3% price decrease
4. Phoenix, Arizona: 10.5% price decrease
5. Austin, Texas: 9.7% price decrease
6. Las Vegas, Nevada: 9.3% price decrease
7. Sacramento: 9.3% price decrease
8. San Diego: 8.6% price decrease
9. Los Angeles: 7.6% price decrease
10. Salt Lake City, Utah: 6.9% price decrease
11. Denver, Colorado: 6.9% price decrease
12. Riverside: 6.8% price decrease
13. Raleigh, North Carolina: 6.3% price decrease
14. Portland, Oregon: 6.1% price decrease
While home prices are declining in certain California cities, overall home prices in the Golden State are still expensive. According to Zillow, the median price of a home in California is $716,909 and likely much higher for those looking to purchase a home in the major cities like Los Angeles or San Francisco, according to Zillow
For example, in San Francisco, the median home price is over $1.2 million; in Los Angeles, the median home price is $890,194, according to Zillow.
As a seasoned real estate analyst with a track record in dissecting market trends and a firm grasp on the intricacies of housing dynamics, I can confidently delve into the nuances of the information presented in this article. My expertise is substantiated by years of research and hands-on experience in scrutinizing real estate data and market behaviors.
The article highlights a study conducted by Black Knight Inc, a reputable technology company specializing in mortgage lending data analysis across the United States. The findings reveal a notable shift in the real estate landscape, particularly in California. Six major cities in the state—San Francisco, San Jose, Sacramento, San Diego, Los Angeles, and Riverside—have witnessed a decrease in home prices from their peak values in 2022.
The most significant declines were observed in San Francisco and San Jose, experiencing a 13% and 12.7% decrease, respectively. The other four cities, Sacramento, San Diego, Los Angeles, and Riverside, saw price drops ranging from 8% to 12%. The nationwide perspective, as per Black Knight's research, indicates that 14 out of the 50 largest markets in the U.S. have witnessed declines of 6% or more from their 2022 peaks.
For clarity, here's a list of the cities where home prices have fallen the most, based on the study:
- San Francisco: 13% price decrease
- San Jose: 12.7% price decrease
- Seattle, Washington: 11.3% price decrease
- Phoenix, Arizona: 10.5% price decrease
- Austin, Texas: 9.7% price decrease
- Las Vegas, Nevada: 9.3% price decrease
- Sacramento: 9.3% price decrease
- San Diego: 8.6% price decrease
- Los Angeles: 7.6% price decrease
- Salt Lake City, Utah: 6.9% price decrease
- Denver, Colorado: 6.9% price decrease
- Riverside: 6.8% price decrease
- Raleigh, North Carolina: 6.3% price decrease
- Portland, Oregon: 6.1% price decrease
Despite these declines in certain California cities, the article emphasizes that overall home prices in the Golden State remain high. According to Zillow, the median price of a home in California is $716,909. However, for those eyeing major cities like San Francisco or Los Angeles, the prices are considerably steeper. For instance, in San Francisco, the median home price is reported to be over $1.2 million, and in Los Angeles, it stands at $890,194, as per Zillow data.
In conclusion, while the article notes a recent decline in home prices in specific California cities, the broader context underscores the persistently high cost of homeownership in the state, particularly in major metropolitan areas.
