Gains In Home Value Are Slowing In San Francisco And Other Western U.S. Cities
The West had been riding high since the recession, with strong job creation in some of the hippest, tech-centered cities. Things are starting to cool off now.
Bloomberg reports that housing gains, though still positive, are down compared to last year in several major metros, including San Diego, Denver, and Austin. More buyers are finding houses too expensive in these cities, and are heading elsewhere, like the far-off suburbs.
With a median home price of $1.1 million, San Francisco experienced the steepest drop. House values increased 15 percent last year, but less than one percent in 2016.
“Homebuyers are starting to see a bit of price fatigue and are starting to step back and think twice about making that purchase,” said Svenja Gudell, chief economist at Seattle-based Zillow. “Prices have grown so much over the last few years as part of the recovery that many markets are well beyond their initial 2006 or 2007 peak, so homes are now more expensive than they’ve ever been.”