Data: RE/MAX; Note: Axios Local sections are selected above; Total includes 50 metro areas analyzed by RE/MAX; Table: Kavya Beheraj/Axios
According to RE/MAX’s February report, home sales in the San Francisco metro area fell 32.5% year over year.
Why it matters: In 2022, potential buyers desperately wanted more inventory. Now houses come on the market, but people can’t afford them.
What’s up: Interest on a 30-year loan started February at 6.09% and rose to 6.65% by the end of the month, per Freddie Mac.
Using the numbers: The outlook here depends on your time frame and budget.
- Compared to the previous year: Prices have fallen with sales. The median price here fell by 12.7% last month compared to February 2022. That’s the second-highest drop in 50 markets surveyed (behind Bozeman, Montana).
- Compared to last month: prices are creeping up and sales are faster. Houses stayed on the market for just 33 days this February, compared to 43 days in January, according to RE/MAX data.
Zoom out: With less competition now, buyers don’t have to put as much money on the table as they did a year ago, reports Axios’ Emily Peck.
Yes but: According to the SF Chronicle, Zillow figures show that prices for the cheapest homes have not fallen as dramatically as for the most expensive.
What you say: “Buyers are more picky, they’re not going to the crazy prices we’ve seen over the past few years,” David Cohen, founder of City Real Estate, told Axios.
- “This time last year, people were rushing to put their houses on the market for fear of rising interest rates, which is what we saw then. Buyers rushed to get into homes for the same reason.”
Between the lines: Some areas around the East Bay and Pacifica, which have lower home prices than San Francisco, are seeing more competition from buyers, Cohen says.
What’s next: Mortgage rates fell nearly a quarter point this month, meaning buyer activity is likely to pick up again.
