San Francisco homeowners are bucking the national trend of sellers slashing prices to lure wary buyers.
Only 12 percent of listings in the San Francisco metro area had price cuts in August, as opposed to 17 percent nationwide, the San Francisco Chronicle reported, citing Redfin. It was the third-lowest share among major metros across the United States behind New York and Newark, New Jersey.
The Bay Area’s housing market tells diverging stories. Home values in the region have dipped, but many sellers aren’t budging, betting on a market rebound driven by the artificial intelligence boom and an influx of interested buyers to the Bay Area.
Sellers who do cut prices in San Francisco usually shave off about 6 percent or $100,000. Two-thirds of single-family homes ended up selling above list price in August, the highest rate in the region.
The $42 million home sale in Pacific Heights marked the priciest deal in the city so far this year, showing no signs of a market downturn, according to the San Francisco Business Times.
Down south in San Jose, however, sellers are experiencing the opposite effect. Those looking for buyers in the San Jose metro area, made up of Santa Clara and San Benito Counties, cut prices slightly more often than the national average, signaling a cooldown in one of the country’s priciest markets.
Nearly one in five homes for sale this summer in the San Francisco metro area, defined as San Francisco and San Mateo Counties, were at risk of selling for less than they were purchased, the highest rate of any region in the U.S., according to Redfin.
Year-over-year, typical home values in San Francisco and San Mateo Counties were flat. San Francisco’s median home price was more than $1.2 million, or $100,000 below pre-pandemic levels. With AI gobbling up office — and now, residential — space, San Francisco home sellers are sticking with their list prices.
— Chris Malone Méndez
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