Here’s how much Bay Area home prices have fallen from 2022 peak
As we enter the new year, potential homebuyers and sellers in the Bay Area may be wondering just how far off
home prices
are from the overheated days earlier this year when they seemed to be hitting new highs all the time.
Rising mortgage rates, soaring inflation and stock market turmoil have cooled housing markets across the country, with the Bay Area leading the trend since the summer. But
mortgage rates
have actually edged down recently, from their 2022 high of 7.1% on Nov. 10 to
6.3% on Dec. 15.
Earlier this month, we reported that several data sources and experts predicted home prices in the Bay Area
would continue to fall through 2023, with real estate listings website Zillow projecting a 3.6% drop in the next year in the San Francisco metro area.
So what does the latest data show?
According to
Zillow’s updated data, home prices continued to decline slightly from October to November in the San Francisco metro area. Typical home values declined 0.7% month-over-month, from $1.38 million to $1.37 million. That includes Alameda, Contra Costa, Marin, San Mateo and San Francisco counties.
This is the sixth consecutive month of home value decline in the San Francisco metro. The area has now seen a 6.2% drop in home values from the peak recorded in May. That’s the biggest decrease in that time frame among the 20 largest U.S. metros. The Phoenix metro has the second largest home value decline of 4.5% from May to November, followed by San Diego and Los Angeles where home values both went down 4.2%.
Still, even with the continued decline, the San Francisco metro remains the most expensive out of the 20 largest metros, and the second largest among all metros analyzed.
By contrast, the Miami metro area had the biggest increase in home values of 8.5% among the 20 largest metros, going up to about $440,000 in May to $478,000 in November. Tampa had the second largest jump of 4.5%, followed by Philadelphia with a 3.7% home value spike.
The San Jose metro, which includes Santa Clara and San Benito counties, has seen values bounce back slightly over the past few months, but values are still down 5.1% from their peak in May. The San Jose metro continues to be the most expensive metro in the U.S. out of all the areas analyzed by Zillow.
