Sales of single-family houses: -43% year-over-year. Year-over-year, the median price plunged 15%. Silicon Valley: Santa Clara County (includes San Jose): The median price of single-family houses plunged 25% from the peak in April 2022, by $455,000, from $1.97 million to $1.48 million. But sales of condos have essentially frozen, having collapsed by 64% year-over-year. Sales of single-family houses plunged 38% year-over-year. This median house price is now below where it had been in December 2020, and below where it had first been in April 2018. Year-over-year, the median price plunged by 14%. Silicon Valley: San Mateo County: The median price of single-family houses plunged by 30% from the peak in April 2022, by $726,000 in nine months, from $2.40 million in April to $1.67 million in December. Where is this demand supposed to come from? Who is going to buy at these prices, with layoff announcements spreading across the area on a daily basis, and with stock prices of local companies (stock-based compensation plans) and cryptos getting demolished? Who will have the desperation to buy at these still sky-high prices? At what prices will the buyers come out of the woodwork? That will be put to the test over the next few months. Then the spring selling season normally shows up when demand normally perks up prices. Seasonally, January is the low point for median prices in the Bay Area. But in a huge market like this – the nine-county Bay Area has a population of around 7.6 million people – the median price is a reasonably reliable indicator of the direction and magnitude of price changes. Some caveats here about median prices: They’re volatile and they’re seasonal, and they can get skewed by the mix of what actually sells, etc. Per square foot, the median price also dropped about 10%. Year-over-year, the median price dropped about 10%. Problem solved – unless they want to sell. So in essence, this 30% plunge isn’t a big deal in the overall scheme of things.īut for people who used to look on Zillow constantly to see how much richer they have gotten by just living there, well, they might have to stop looking. But not many people bought a house during these two years. That this 30% plunge from peak only put the median price back roughly where it had been in December 2020 shows how crazy the price spike had been during the free-money pandemic. The plunge in December – after months of layoff announcements by big and small companies in the area – was particularly brutal. The median price of single-family houses in the San Francisco Bay area plunged by 30% in December from the crazy peak in March 2022, by nearly $455,000, from $1.54 million to $1.08 million in nine months, according to the California Association of Realtors today. In all of California, sales plunged 44%, to 240,000 homes, just a hair higher than during the bottom of Housing Bust 1 in late 2007. ![]() ![]() But in Southern California, where price declines haven’t been that huge yet, sales collapsed by 48%. Sales of single-family houses plunged by 37% year-over-year in the Bay Area. Home prices for all of California are down, Southern California too is getting hit, even San Diego, but the Bay Area is the standout in terms of the steep and deep plunge in prices. Hammered by waves of layoffs, swooning stocks, collapsing cryptos, and 6% mortgage rates.
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