flexiblefullpage - default
Currently Reading

San Francisco Home Sellers Take a Hit as Home Prices Plunge

billboard - default
Market Data + Trends

San Francisco Home Sellers Take a Hit as Home Prices Plunge

Roughly 1 in 8 San Francisco home sellers is losing money on real estate transactions, a higher share than in any other U.S. metro area

September 6, 2023
Houses on a hill in a San Francisco neighborhood where home prices are dropping
Image: fannyes / stock.adobe.com

Recent Redfin analysis revealed that San Francisco home sellers are four times more likely to sell at a loss compared with the national average. Approximately 12.3% of homes sold in San Francisco from May to July were purchased for less than the seller paid, a sharp increase from the 5% rate a year earlier. This trend is the highest among major U.S. metros and is quadruple the national rate of 3%. 

In San Francisco, the typical homeowner selling at a loss faced a median loss of $100,000, tying with New York for the largest median loss in dollar terms. Nationwide, the average loss was $35,538. Conversely, homeowners were least likely to sell at a loss in San Diego, Boston, Providence, R.I., Kansas City, Kan., and Fort Lauderdale, Fla., where only around 1% of homes sold for less than the purchase price, Redfin reports.

San Francisco home sellers were most likely to lose money because the region has experienced outsized home-price declines. It was one of the first markets to see prices sink when high mortgage rates triggered a slowdown in the housing market last year. By April 2023, San Francisco’s median home sale price was down a record 13.3% year over year, more than triple the nationwide drop of 4.2%. As of July, it was down just 4.3% year over year to $1.4 million, but that compared with a national gain of 1.6%. The total value of homes in San Francisco has fallen by roughly $60 billion since last summer, a separate Redfin analysis found.

Prices in the Bay Area have fallen fast for a few reasons: First, it’s home to the most expensive real estate in the country, meaning housing costs had a lot of room to come down. It has also been hit hard by layoffs in the technology sector. Additionally, it’s not as popular as it once was; remote work has allowed scores of people to relocate to more affordable areas. 

Read more


leaderboard2 - default

Related Stories

New-Home Sales

New-Home Sales Declined in August Due to High Mortgage Rates, Pricing Pressure

A housing affordability crisis is taking a toll on homebuyer demand and leading to a slowdown in new-home sales

Business Management

3 Truths for Home Sales Success Now and Into the Foreseeable Future

Most sales leaders have been in chaos control since 2020. Stop feeding that mindset and start shifting gears using these three insights 


Fannie Mae's Take on the Future of US Home Sales

The recent forecast indicates slowing home sales, due to continuing mortgage rate increases accompanied by homebuyer hesitance

boombox1 -
native1 - default
halfpage2 -

More in Category

COVID-19 may be easing its grip on the U.S. after a disastrous two years, but lingering supply chain disruptions have builders holding onto their pandemic business tactics

An archive of NHQA-winning companies that represent home building's best in Total Quality Management

Don’t let the current hype about single-family B2R communities obscure the need to create long-term sustainability and asset value

native2 - default
halfpage1 -

Create an account

By creating an account, you agree to Pro Builder's terms of service and privacy policy.

Daily Feed Newsletter

Get Pro Builder in your inbox

Each day, Pro Builder's editors assemble the latest breaking industry news, hottest trends, and most relevant research, delivered to your inbox.

Save the stories you care about

Lorem ipsum dolor sit amet lorem ipsum dolor sit amet lorem ipsum dolor sit amet.

The bookmark icon allows you to save any story to your account to read it later
Tap it once to save, and tap it again to unsave

It looks like you’re using an ad-blocker!

Pro Builder is an advertisting supported site and we noticed you have ad-blocking enabled in your browser. There are two ways you can keep reading:

Disable your ad-blocker
Disable now
Subscribe to Pro Builder
Already a member? Sign in
Become a Member

Subscribe to Pro Builder for unlimited access

Lorem ipsum dolor sit amet, consectetur adipisicing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua.