SF home sellers lose more money than anywhere else in U.S.

Here is more evidence that San Fran has collapsed.

“People selling homes in San Francisco are four times more likely to take a loss than the average U.S. home seller, a new report from the real estate agency Redfin found.

Roughly one of every eight homes that sold in The City during a three-month period ending July 31 was purchased for $100,000 less than the seller originally purchased it for.”

They are force to take the loss in order to physically protect their lives and that of their family.  These are productive people who will live and invest in other States—making San Fran poorer and places like Texas richer.

Report: SF home sellers lose more money than anywhere else in U.S.

By James Salazar, SF Examiner , 9/7/23    https://www.sfexaminer.com/news/housing/sf-homeowners-sold-at-loss-more-than-anywhere-else-in-the-us/article_d22a6e34-4dbe-11ee-b594-53a59e618a10.html

People selling homes in San Francisco are four times more likely to take a loss than the average U.S. home seller, a new report from the real estate agency Redfin found.

Roughly one of every eight homes that sold in The City during a three-month period ending July 31 was purchased for $100,000 less than the seller originally purchased it for.

The approximately 12% of San Francisco homes that sold at a loss was quadruple the national rate. Detroit (6.9%), Chicago (6.5%), New York (5.9%) and Cleveland (5.8%) rounded out the top five metropolitan areas.

Researchers analyzed county records and multiple listing services data across the 50 most populous U.S. metropolitan areas. Homes included in the analysis must have been owned by the same person for at least nine months leading up to the sale.

Redfin attributed the drop in Bay Area home prices to the region being the most expensive real estate market in the country, meaning that housing costs had plenty of room to come down.

The Bay Area was also impacted by mass layoffs in the tech industry earlier this year, as well as the rise of remote work, which gave some employees opportunities to relocate to more affordable surrounding areas.

“In the Bay Area with very tight supply, people have to outbid each other and so prices in the Bay Area might have actually gone up a little faster,” Oscar Wei, deputy chief economist at the California Association of Realtors, said.

“Demand may be slightly different from sales. We do have some housing demand. We just don’t have sales because the cost of borrowing is high.” Wei added. “The other part of it is we just don’t have enough inventory. Nobody’s being able to find a home that they like and, of course, they can’t afford it.”

According to Redfin, San Franciscans were most likely to have losses as the Bay Area sustained exceptionally large home-price declines. The region was one of the first to see price drops as high mortgage rates spurred a slowdown in the market last year.

By April, the median home price was down 13.3% year-over-year, which was more than triple that of the U.S.. In July, the median home price was down just 4.3% year-over-year in comparison to a U.S. gain of 1.6%.

Other factors play roles in shaping the market. For example, summer is a popular moving season as buyers and sellers with children can relocate their families before the next school year begins. Weather can also influence when a buyer or seller decides to relocate, as does the holiday season between November and January.

“Typically, towards the end of the year, the last quarter of the year, we typically have a low season, and prices tend to be a little bit lower,” Wei said. “I still do believe that prices will probably continue to slow. We might have already seen the peak price for the year.”