Homeowners in San Francisco seeking to sell within the troubled city are a whopping 4 times more likely than the common US home seller to take a loss, in line with real estate brokerage Redfin.
Residents seeking to get out of town — where a once-trendy downtown area has descended right into a drug-addled hellscape, and historic hotels have been converted into roach-infested “Single-Room Occupancy” housing for vagrants — can expect to sell their San Francisco abode for $100,000 lower than they bought it for.
Roughly 12.3% — or one in eight — of the homes sold within the Bay Area throughout the three months ended July 31 was purchased for lower than the vendor bought it for, Redfin found.
The figure is a 5% increase from the identical period a 12 months ago, is higher than some other major US metropolis and a staggering 4 times the three% national rate of householders who take a loss when selling their homes, in line with the actual estate firm.
Detroit is home to the second-highest share of householders who take a loss of their home-selling transactions, at 6.9%, followed by Chicago and Recent York, where 6.5% and 5.9% of householders take a loss in selling their homes, respectively.
Homeowners in San Francisco selling their abode within the troubled city can expect to receive $100,000 lower than they bought their home for, in line with real estate brokerage Redfin.AFP via Getty Images
Though the share of Recent York homeowners who reported a loss was half that in San Francisco, the cities were tied for the most important median loss in dollars, at $100,000, Redfin present in a separate evaluation.
Thus, it’s not a surprise that San Francisco, Detroit, Chicago and Recent York all rank among the many top 10 cities Redfin found residents wish to move out of.
San Francisco ranks No. 1, Recent York No. 2, Chicago No. 5 and Detroit No. 9, in line with Redfin.
Across the US, the common homeowner who didn’t profit off of selling their home lost $35,538, in line with Redfin, which analyzed Multiple Listing Service data across the highest 50 US cities of homes that were owned by the identical party for a minimum of nine months before the sale.
States where homeowners were least more likely to sell at a loss: San Diego, Boston, Windfall, R.I., Kansas City, Mo., and Fort Lauderdale, Fla.
In each of those cities, only about 1% of homes sold for lower than the vendor originally paid, Redfin reported.
Redfin attributed San Francisco’s unlucky housing stats to a pointy decline in home prices triggered by high mortgage rates, which climbed to their highest level since 2001 last month.
As of April, town’s median home price was down over 13% 12 months over 12 months — triple the nationwide slowdown of 4.2% — swiping a whopping $60 billion in the full value of homes since last 12 months.
As well as, home prices within the Bay Area fell since the metro area was hit hard by mass layoffs within the tech sector, Redfin said.
Homes in San Francisco have lost a complete of $60 billion in value since last summer.Getty Images
Major tech firms based in San Francisco like Apple, Google, Meta and Salesforce all conducted rounds of layoffs inside the past 12 months.
In considered one of the most important layoffs San Francisco saw in recent months, Meta sacked 21,000 employees as a part of Mark Zuckerberg’s so-called “12 months of efficiency.”
Salesforce also axed some 7,000 staffers — 10% of its workforce — at the start of this 12 months after rapid pandemic-era hiring left the corporate with “too many individuals” amid an economic slowdown.
And late last 12 months, Elon Musk infamously slashed his staff at Twitter, now often known as X, in half, handing nearly 4,000 employees pink slips.
