Aug 24, 2022 - News

Home sellers in San Francisco drop asking prices

Data: Redfin; Chart: Erin Davis/Axios Visuals

More home sellers in San Francisco are lowering their asking prices, further indicating a real estate slowdown across the city.

What's happening: Nearly 27% of homes on the market in San Francisco reduced their listing prices in July, an increase from the roughly 15% of homes that slashed prices in July 2021, according to Redfin.

Driving the news: Increased mortgage rates and a sluggish stock market are among the factors that have led to a cooled off housing market in the Bay Area and beyond, Redfin says.

  • In July, 179 single-family homes were sold in San Francisco compared to 247 homes sold during the same month last year. That's a nearly 28% decline in home sales across the city.

Zoom out: Other U.S. cities also saw a high percentage of homes discounting their listing prices, particularly in what Redfin describes as "pandemic boomtowns."

  • Nearly 70% of homes in Boise, Idaho, dropped their asking price last month compared to around 30% in July 2021.
  • Salt Lake City saw the second-highest change, with around 56% of homes discounting prices in July, versus nearly 25% the year prior.

What they're saying: "Individual home sellers and builders were both quick to drop their prices early this summer," Boise Redfin agent Shauna Pendleton said in the report. "They priced too high because their neighbor's home sold for an exorbitant price a few months ago."

  • "My advice to sellers is to price their home correctly from the start [and] accept that the market has slowed."

In San Francisco, listing prices are starting to better reflect what homes actually sell for.

  • Last month, homes in the city sold for 8.6% over asking price on average, down from a 13.7% average overbid the same month in 2021.
  • Yes, but: The median sale price for single family homes last month in San Francisco was still over $1.6 million.

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