S.F. Bay Area home prices are still dropping. Here’s how they compare to other U.S. metros
Despite uninterrupted price decreases in recent months, homes in the San Francisco metropolitan area remain the most expensive among the 20 largest metropolitan areas in the country, data shows.
October marked the fifth consecutive month that home values in the San Francisco metro declined, according to data from
listings site Zillow
— a sharp reversal from pandemic-era growth, and one that’s occurring
across the Bay Area. Typical home values in the area — which includes Alameda, Contra Costa, San Francisco, San Mateo and Marin counties — dropped by over 5% from June to October.
Still, San Francisco remained on its longtime perch
at the top of the nation’s priciest markets.
In fact, San Francisco is the only metro among the largest 20 in the U.S. where home values crack seven-figure territory, at $1.37 million, according to Zillow. It was followed by two other California markets — No. 2 Los Angeles, at $903,359, and No. 3 San Diego at $881,973.
October data shows only 10 out of almost 900 metros in the U.S. have seven-figure typical home values, and among those, San Francisco is ranked second-most expensive. San Jose — the 35th largest metro — leads with home values at $1.55 million.
Zillow’s estimates for typical home value are based not only on the prices of recently sold homes, but also on the estimated value of all homes within a ZIP code based on the selling price trends of similar homes in the area.
While homes in the city of San Francisco are more expensive than in its wider metro area, the city saw relatively sharper declines during the June-October period. The typical home value in the city last month was $1.46 million, an almost 8% decrease since June. Meanwhile, the typical home value across California was listed at $765,000, a 3.3% decline since the summer.
Homes in San Francisco have historically been more expensive than real estate in the broader metro area, but the gap has been narrowing since early 2020, and especially in mid-2021 as prices in the metro area rose at a relatively faster pace.
The pandemic saw a surge in home prices as buyers seeking more space competed for limited supply while mortgage rates were at rock-bottom levels. But in recent months, rapid interest-rate hikes, soaring inflation and stock market turmoil have cooled housing markets across the country, with
Bay Area and Northern California leading the trend.
Compared to other large U.S. metros, San Francisco saw the largest declines in home values from June to October at 5.4%, followed by the Phoenix and Los Angeles metros, with 4.7% and 3.9% decreases, respectively.
Meanwhile, in Miami, home sales are
declining, but prices are still going up. October data shows Miami’s typical home value was $472,926, with the largest increase among large U.S. metros from June to October, at 5%.
While home values in San Francisco have been decreasing, prices still have a ways to go before
offsetting elevated mortgage rates. A previous Chronicle analysis found that with the current mortgage rate of around 7%, home values would need to drop to $1.33 million before home buyers see the average monthly payment return to the $8,000 level seen in May.
Adriana Rezal is a San Francisco Chronicle staff writer. Email: [email protected]
