Higher interest rates and inflation — coupled with historic-high prices and market volatility — are all forcing a cool down in the Bay Area and across America’s largest housing markets, according to a new report from Point2.
The study also found condo prices contracted at a much slower rate than single family home prices, and some cities showed increases in condo prices. Single family home prices did not continue their upward trend in any of the cities included in the study, which looked at the time period between May and October 2022.
Among the findings for the Bay Area and California:
- Single family home prices decreased in all 16 of the largest California cities included in the study. In the Bay Area, San Francisco led the way with a decline of 18% in just a few months, followed by Fremont and San Jose with drops of 17% and 16%, respectively.
- Oakland, San Diego, Chula Vista, Anaheim, Sacramento, and Long Beach, single family home prices dropped between 10% and 15% compared to their spring peaks.
- At the other end of the spectrum, homes in Bakersfield dropped by only 1%, followed by Fresno where house prices dropped by just 4%.
- Price increase patterns showed a stronger demand in the condo market: Bakersfield saw the largest increase, as condo prices jumped 12%. Condo prices also increased 6% in Fremont and 3% in Santa Ana.
- But condo prices also decreased in 13 large California cities, with Stockton recording the biggest price drop at 29%. Oakland saw condo prices drop 19%.
For the full data set and the visuals highlighting the cities with the biggest contractions in condo prices and single-family home prices nationwide visit: https://www.point2homes.com/news/us-real-estate-news/condo-prices-hold-up-better-than-single-family-homes.html.