Many American housing markets are facing a recession in response to rising mortgage rates and the Wall Street crisis, according to a Friday report from Redfin, with the biggest impact seen in Northern California.
Five of the top 10 markets to cool off in three months from February through May were in Northern California, including San Jose, Okland, San Francisco, Sacramento and Stockton — and three of those five of those bays, Bay Area, in Redfin were. Said.
The Seattle-based brokerage tracks the housing markets in America’s 100 most populous metropolitan areas. The market cooldown ranking is based on many factors such as: B. Year-over-year changes, supply, pending sales, sell-to-list ratio and average time to sell houses. The data were collected from February to May.
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“The real estate market has changed a lot in the last month as high interest rates make homes more expensive than before,” San Francisco Redfin agent Joan Rose said in the report. “At the same time, fewer people can buy expensive houses because of the unstable stock market.”
Demand for homebuar in San Jose was the biggest drop, leading to inventory through the end of May. According to Radfin, the number of homes for sale was 10% higher than in May 2021, while supply was 43% lower in February.
In addition, upcoming sales were down 21.3 percent across the Metro. According to the report, fortnightly homes sold were down 5% in May.
Outside of Northern California, other markets cooling faster than elsewhere in the US include Seattle; Bois, Idaho; Denver; San Diego, California; And Tacoma, Washington.
According to a separate report published by Compass on Thursday, another indication of a decline in an adjacent market in the San Francisco Gulf region is that prices fell in June.
The region’s average selling price rose nearly 18% annually in April and fell to over 10% in May. According to Kompass, the year-on-year price increase fell to just 2%-3% in the last month.
Patrick Carlisley, chief market analyst for the Compass Gulf region of San Francisco, said: “The impact of serious economic headwinds this year – rising inflation and interest rates, falling stock markets, fears of a recession – are accelerating the Gulf region’s real estate markets. ” Report.
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