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More San Francisco home sellers are losing money on their sale than anywhere else in the U.S., according to a report Wednesday from Redfin.
Almost one in five, or 17.8%, of homes that sold in the city during the three months ending Feb. 29, changed hands for less than the seller originally paid, a share that is close to its highest level in more than a decade, the online property portal said. It’s also a higher share than any of the 50 metro areas included in the report, and more than four times the national share of 4.3%—which itself is at the highest level it’s been since May 2021.
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Despite being home to some of the highest property prices across the country, San Francisco home sellers are increasingly likely to lose money because of how drastically real estate values have slipped in recent years, Redfin said.
The city’s median sale price peaked at $1.66 million in April 2022, and as of February had dropped 15%, or $250,000, to $1.41 million.
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“Home prices have fallen from their peak, especially when it comes to condos,” said Christine Chang, a local Redfin agent.
In some good news for the city’s home owners though, prices have ticked up after hitting a low point of $1.28 million in January 2023, and the second quarter is expected to deliver further gains and the possibly “the hottest market since the peak of the pandemic boom,” according to a separate report from Compass on Monday.
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Right behind San Francisco, Detroit had the second highest share of homes selling at a loss during the three months ending Feb. 29. In Motor City, more than one in 10, or 10.8%, of sellers lost money on their home sale.
Cleveland, where 8.2% of homes sold at a loss, St. Louis (8.1%) and Chicago (7.9%), rounded out the top five.
Just like in San Francisco, home prices in these areas have fallen from their recent highs. In the case of Detroit, the median sale price is down roughly 20% from its pandemic peak, the report said.
On the flip side, homes were least likely to sell at a loss in Providence, Rhode Island, where just 1.2% of homeowners who sold during the three months ending Feb. 29 lost money.
It’s followed by Boston; Anaheim, California; Fort Lauderdale, Florida; and San Diego. Roughly 2% of homes sold for less than the seller originally paid in each of those metros.
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