Home sellers in San Francisco drop asking prices

Extra house sellers in San Francisco are decreasing their asking costs, additional indicating an actual property slowdown throughout the town.

What’s taking place: Almost 27% of properties in the marketplace in San Francisco lowered their itemizing costs in July, a rise from the roughly 15% of properties that slashed costs in July 2021, in accordance with Redfin.

Driving the information: Elevated mortgage charges and a sluggish inventory market are among the many components which have led to a cooled off housing market within the Bay Space and past, Redfin says.

• In July, 179 single-family properties had been bought in San Francisco in comparison with 247 properties bought throughout the identical month final 12 months. That is a virtually 28% decline in house gross sales throughout the town.

Zoom out: Different U.S. cities additionally noticed a excessive share of properties discounting their itemizing costs, notably in what Redfin describes as “pandemic boomtowns.”

• Almost 70% of properties in Boise, Idaho, dropped their asking worth final month in comparison with round 30% in July 2021.
• Salt Lake Metropolis noticed the second-highest change, with round 56% of properties discounting costs in July, versus almost 25% the 12 months prior.

What they’re saying: “Particular person house sellers and builders had been each fast to drop their costs early this summer season,” Boise Redfin agent Shauna Pendleton stated within the report. “They priced too excessive as a result of their neighbor’s house bought for an exorbitant worth just a few months in the past.”

• “My recommendation to sellers is to cost their house appropriately from the beginning [and] settle for that the market has slowed.”

In San Francisco, itemizing costs are beginning to higher replicate what properties really promote for.

• Final month, properties within the metropolis bought for 8.6% over asking worth on common, down from a 13.7% common overbid the identical month in 2021.
• Sure, however: The median sale worth for single household properties final month in San Francisco was nonetheless over $1.6 million.