San Francisco has seen a greater increase in price drops than any other U.S. metro, with the share of sellers slashing prices more than doubling from a year ago as the pandemic drives homebuyers out of the Bay Area.
We delved into July housing market data to analyze whether homebuyer interest in additional space has translated to a hotter housing market for bigger homes. The answer? Yes—but only slightly.
A surge in homebuilding before the pandemic is now driving growth in new-home sales. A shift to the suburbs and record-low mortgage rates are also contributing factors.
Home prices typically decline this time of year after hitting a seasonal peak in late June or early July. This year, as of the four weeks ending August 9, home prices were up 3.5% month over month.