Data Shows SF Home Prices are Coming Down Faster than Any Other City in the US
San Francisco has had a long history of being home to some of the most shocking real estate prices on earth.
However, according to new data released a few days ago, that could be changing ever so slightly pretty soon.
As recently reported on ABC7 News, one index showed that housing prices in the city by the Bay decreased faster in August than in any other city in the country. In fact, there was a 4.3 percent drop since July.
"A couple of months ago, it was academic. We heard that there were changes coming, but I'm sensing on the street that folks are feeling, okay, it's here. It's changed," said realtor John Yen Wong.
Some economists have said there are several reasons for the drop.
"We've seen interest rates going up very quickly. Faster than they've gone up since the 1980s. The Federal Reserve has been pushing up short-term rates and mortgage rates have responded as well," said economist Daniel Altman.
In addition to climbing interest rates and high inflation, the already high prices of San Francisco real estate means costs have further to fall.
Despite being off their peak, real estate prices are still settling near all-time highs.
"Given the market that we had before where there were 10, 15 offers for a property, that was sort of an unreal market. Now it's moving into a more reasonable discussion between buyer and seller type of market," Wong said.
Real estate experts say local prices, much like the rest of America, will keep falling in the immediate future.
However, most don't believe that the downturn will look like the crash the US experienced back in 2008.
"We don't have such a huge overhang of leverage this time, so I don't think that the crash, if there is one in housing, would be quite as bad as what we saw then," Altman said.
Even with all its flaws, San Francisco still continues to be a highly desirable place to live for many people.
"If you mention the name San Francisco anywhere in the world, and anywhere in this country, everybody knows of it," said Wong.
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