Three Bay Area cities among metros that saw biggest drop in median home sale prices: Redfin (2024)

FAQs

Three Bay Area cities among metros that saw biggest drop in median home sale prices: Redfin? ›

Out of 24 of the 50 most populous U.S. metro areas where median sales prices fell, San Jose was tops of the list with a -17.2% YoY decline. Coming in at number three was San Francisco with an -11% YoY decline. Oakland was fourth with -10.9 YoY decline.

In a recent housing report from real estate experts at RE/MAX, the Bay Area is seeing the second largest drop in home sale prices since 2022. San Francisco home prices are down 12.7% over the past year; this brings the median sales price of a home in San Francisco to $960,000.

Atherton has by far the most expensive homes in the Bay Area, according to a new Compass report. With a median of nearly $11 million thus far in 2023, the Peninsula town is selling homes for close to double the price of second-place Hillsborough, where the median is $5.6 million.

Based on the latest financial disclosure, Redfin Corp has a Probability Of Bankruptcy of 39.0%. This is 8.81% lower than that of the Real Estate Management & Development sector and 21.7% lower than that of the Real Estate industry.

According to the American Enterprise Institute's Housing Center, prices nationwide, measured month over month, fell for the first time in August since the depths of the COVID crisis, retreating 1.6% from July. “The turn has finally happened, based on actual closings,” says Ed Pinto, the Institute's director.

with a significant share of the population concentrated in the Bay Area. On any given night, 38,000 individuals in the Bay Area are homeless, an increase of 35 percent since 2019. Point-in-time (PIT) counts for Bay Area counties in 2022.

By the numbers: San Francisco County, which comprises only the city of San Francisco, had a population of 808,437 in July 2022, down from 870,393 in July 2020. San Francisco had the steepest population decline among Bay Area counties, followed by San Mateo County with a 4.4% population loss from 2020 to 2022.

Atherton, located between the tech hubs of San Francisco and Palo Alto, has ranked as one of the wealthiest areas of the country for several years in terms of both average household income and most expensive real estate transactions and listings.

San Jose-Sunnyvale-Santa Clara, California, is the most expensive metro area in the US. San Jose is the bona fide capital of Silicon Valley.

Los Altos Hills has no retail shops, post office, or library. There are very few sidewalks, and each new home is required to have at least a one-acre lot, to help preserve the town's deliberately engineered rural feel. Not surprisingly, that translates into higher real estate values.

Why is Redfin tanking? ›

Redfin Corp. sank to a fresh record low after an Oppenheimer analyst downgraded the stock and said the real estate company's model was “fundamentally flawed.” Shares dropped almost 10% on Monday to $3.63, as Oppenheimer's Jason Helfstein cut his recommendation to underperform from a hold-equivalent rating.

Redfin's home value estimator is more accurate than Zillow's when it comes to pinpointing the sales price. According to Redfin, its estimates are approximately 74% accurate within 5% of the sales price for listed homes. By comparison, Zillow is only 67% accurate within 5% of the sale price for listed homes.

They see existing single-family home sales to fall 18.2% to 279,900 units this year vas 342,000 homes sold in 2022. They expect home prices to improve in Q3 & Q4 this year, over in 2023 they expect the medium home will delince 5.6% compared to 2022, to $776,600 in 2023 ($822,300 in 2022).

If a major downturn hits the U.S. economy, home prices in the New York City, Chicago and Philadelphia areas are the most vulnerable to declines, according to a new report from real-estate data company Attom Data Solutions.

According to worldpopulationreview.com, Hawaii is the most expensive state to live in, with its housing costing three times the national average. New York and California rank as the second and third most expensive states in which to live, respectively.

The most overvalued markets to purchase a home tend to be in California, but also include Seattle, Washington, and “Zoom towns” such as Boise, Idaho, and Greeley, Colorado. The most overvalued markets to rent a home are mostly found in California and Florida.

Out of 24 of the 50 most populous U.S. metro areas where median sales prices fell, San Jose was tops of the list with a -17.2% YoY decline. Coming in at number three was San Francisco with an -11% YoY decline. Oakland was fourth with -10.9 YoY decline.

The Bay Area's population is shrinking and more housing is being built, but local home prices remain sky-high in the latest report — about 28% above where they were when the pandemic first upended the local real estate market.

The metro area includes San Francisco, Oakland, Berkeley and surrounding suburbs. A line chart shows how the typical San Francisco metro area and city rental prices have changed between 2015 and 2023. Rents have generally increased before dipping sharply in 2020, followed by a surge that peaked in 2022.

The two biggest reasons why are high housing costs and the acceleration of remote work. As working from home became an option for more people, those people moved to places where homes cost less. Get a weekly recap of the latest San Francisco Bay Area housing news.

How many people are leaving the Bay Area? ›

A closer look at the Bay Area numbers tells a more dramatic story: The nine-county region has lost a quarter million residents between 2020 and 2022, or a 3.2% decline. The exodus left the 2022 population of the SF Bay Area at 7.5 million.

As San Francisco residents left the city in the early years of the pandemic, they took billions of dollars in income with them. About 32,000 more people left San Francisco than migrated to the city from 2020 to 2021, according to newly released tax return data from the IRS.

The lowest average income to be considered in rich Oakland is $161,345. In comparison, that number stands at $66,139 for 50th-ranked Detroit — almost a $100,000 difference. To be considered rich in San Jose, one needs to make an average of at least $214,975. That number is at $239,840 for San Francisco.

“An adjusted gross income (AGI) of $745,314 will get you in the 1 percent in California, while you'll need to earn $291,277 to be in the top 5 percent of income earners. The top 1 percent account for 41.55% of total Golden State income taxes,” SmartAsset said.

Median household income among the bottom 10% of earners is $15,000 per year, while the median household income among the top 10% has reached $534,600 per year.

A sneak peek inside Musk's massive estate

Located in Hillsborough, CA, the seven-bedroom, 9.5-bathroom estate measures 16,000 square feet and sits on a 47.4-acre lot—which, according to the listing, is one of the largest parcels of land on the San Francisco Peninsula. How much are views for miles worth?

Palo Alto can be found in the San Francisco Bay area. It is home to Stanford University, making it a populous city. It is an attractive location to live in for many young professionals, entrepreneurs and students alike. Palo Alto is a safe, family-friendly place to live in Silicon Valley.

Actress Adrienne Barbeau, Google CEO Sundar Pichai, real estate developer and former Oakland Athletics owner Stephen Schott also currently reside in Los Altos Hills.

Loyola, Los Altos, California

The richest neighborhood in America is Loyola, California. The average household income in Loyola is $326,069, with the median income a little lower at $246,563. The median listing price is $3,899,000. Loyola also borders Los Altos Hills, which is one of the richest towns in America.

Is Palo Alto more expensive than LA? ›

The cost of living in Palo Alto is high but not as high as other major California cities like San Francisco and Los Angeles. According to Numbeo.com, the cost of living in Palo Alto is 13% higher than the national average but only 5% higher than in San Francisco.

Both Zillow and Redfin give homes an approximate value, but the Zestimate provided by Zillow has proven slightly less accurate than Redfin's estimate. Final numbers depend significantly on the local market and demand for a property in your particular location. So, an estimate truly is a roundabout valuation.

Redfin has laid off 201 employees, the third time the Seattle-based real estate company has reduced its workforce since June. The layoffs, which represents about 4% of its workforce, was first reported by GeekWire.

If your home has additions or renovations that don't show up in the data, then its estimated value will not reflect those changes. Errors do happen, so your value also may be low because of outdated or incorrect information about its previous sales prices or tax history.

1. Redfin. The most accurate home value estimator is Redfin as it uses historical pricing data and also considers real-time demand and market trends. Redfin estimates are more accurate than Zillow, and the interface is intuitive, making it easy to find exactly what you're looking for.

First, visit your Owner Dashboard by selecting 'My Home' on the bottom icons. Select the home you'd like to unclaim. Next, select the three dots in the top-right corner of the Owner Dashboard page. Now, a menu will appear, select 'Unclaim this Home' to remove this home from your Owner Dashboard.

If your home has more value-factors (bigger square footage, better condition, more amenities, etc) than the comparables that are pulled, then your Zestimate is likely to be lower than actual value.

The Market Ahead

Redfin deputy chief economist Taylor Marr expects about 16% fewer existing home sales in 2023 vs 2022. Marr believes potential buyers are still grappling with affordability, high mortgage rates, high home prices, inflation, and a potential recession.

Zillow still predicts that the vast majority of regional housing markets will see home values appreciating in 2023. Among the 897 regional housing markets Zillow economists analyzed, 853 markets are predicted to see rising house prices over the next twelve months ending with April 2024.

According to recent data from CoreLogic, the answer may be no, at least for the time being. While there are signs of a slowdown in the housing market's year-over-year growth rate, the overall data and forecasts suggest that a crash is unlikely in 2023.

What areas are most at risk of housing downturn? ›

Counties in states such as New Jersey, Illinois, and California, are most at-risk of housing market problems, with 33 of the report's 50 most-vulnerable counties in these three states, according to a second-quarter report from Attom, a property data provider.

In addition, during recessions, people with access to cash are in a better position to take advantage of investment opportunities that can significantly improve their finances long-term.

Recessions can often push buyers out of the market, but that's not necessarily because it is a bad time to buy. In fact, if you can afford to, Miller argues a recession can be a good time to buy a home. “Some people hold off on buying when this happens, but I think this is a mistake,” he says.

1. Mississippi. Coming in as the cheapest state to live in in the United States is Mississippi with a cost of living index score of 83.3. It also has the lowest average housing costs in the nation at 33.7% below the national average.

Renting in a U.S. metro with expensive housing costs could make reaching your personal finance goals more challenging. Moody's Analytics found that rent-to-income ratios in metros like San Francisco, Boston, Miami, Los Angeles, and New York make these areas the least affordable places to live in the U.S. as a renter.

According to several studies on cost of living, Hawaii is the most expensive U.S. state to live in. Prices are typically double in Hawaii compared to those on the mainland, and the continued rise in inflation is making costs ranging from housing to health care much more expensive.

The Bay Area has the worst performing housing market in the nation, according to a new report.

The least affordable was Miami, where the median-priced home costs $598,000 and would require a monthly payment of $3,183 to cover mortgage and taxes — more than 85 percent of the local median household income of $44,581 (or $3,715 a month). Los Angeles and New York followed — no surprise given their steep home prices.

All the cities on this graphic are classified as severely unaffordable⁠—and, for the 12th year in a row, Hong Kong takes the top spot as the world's most unaffordable housing market, with a score of 23.2.

The Bay Area's population is shrinking and more housing is being built, but local home prices remain sky-high in the latest report — about 28% above where they were when the pandemic first upended the local real estate market.

Why is Bay Area so expensive? ›

And basic economics tells us that when demand is higher than supply, there is more competition for less stuff, and thus prices increase. And thus, the reason for the high prices on the Peninsula is that there are a lot more people looking for homes and apartments than places that are available to buy or rent.

Year to date change in home prices

Through the first three months of 2023, the biggest home price drops were found in markets like Austin (down 3.1% since December), Boise (down another 2.8%), Las Vegas (down another 3%), Phoenix (down another 2.5%), and San Jose (down another 3.4%).

Strict zoning regulations are a primary cause behind the housing shortage in San Francisco. Historically, zoning regulations were implemented to restrict housing construction in wealthy neighborhoods, as well as prevent people of color from moving into white neighborhoods.

Despite the decline in home values experienced across the country as reported by NBC Bay Area, Bay Area housing prices exhibit a staggering 28% increase compared to the start of the pandemic, indicating that the local real estate market has yet to normalize.

The median home price in the Bay Area has risen to $996,000 - an inflation-adjusted 70 percent increase since 2012 - as the region's robust job market and growing population have increased the demand for housing in an already constrained market.

This was as true in California compared to any other state, despite having some of the highest average prices in the country even before 2020. According to Zillow, prices peaked at more than $771,000 in July of last year. Staggeringly for buyers, homes have increase by an average price of $210,000 since April 2018.

In San Francisco, the threshold for what's considered wealthy is a net worth of $5.1 million.

Between 2019 and 2021, the San Francisco metro area, which includes the East Bay and Peninsula, saw its population fall 2.3%, while San Jose's population dropped 1.9% — a collective loss of 147,000 residents.

This is equivalent of $1,682 a week or $7,290 a month. Most salaries in San Jose range between $68,322 (25th percentile) to $106,140 (75th percentile) annually. Of course, salaries will vary depending on your occupation, experience, and many other factors.

Will house prices go down in a recession? While the cost of financing a home typically increases when interest rates are on the rise, home prices themselves may actually decline. “Usually, during a recession or periods of higher interest rates, demand slows and values of homes come down,” says Miller.

Have home prices dropped in ca? ›

Buyers backed off, sales plunged and, for the first time in a decade, home prices underwent a sustained slide. By one measure, prices in the six-county region fell 13% from the peak last spring. That might be as low as they go.

Southern California and the Bay Area are epicenters in the nation's housing crisis. The Los Angeles-Orange County metro area had a shortfall of 388,874 homes in 2019, or 31% more than in 2012. The shortfall tripled in the Inland Empire to 153,372 homes in 2019, fourth highest in the Up For Growth study.