SAN FRANCISCO (KRON) — While the Bay Area is notorious for its sky-high housing costs, three Bay Area cities are actually among the top five U.S. metro areas that saw the biggest drop in year-over-year median home sale prices last week, according to a new report from Redfin.
Out of 24 of the 50 most populous U.S. metro areas where median sales prices fell, San Jose was tops of the list with a -17.2% YoY decline. Coming in at number three was San Francisco with an -11% YoY decline. Oakland was fourth with -10.9 YoY decline. Rounding out the top five were Austin at number two, -13%, and Sacramento in fifth, -8.6%.
Overall, Redfin says mortgage rates across the nation have declined from a four-month high that they reached last week. Daily average mortgage rates fell 7% to about 6.5% over the weekend, following the collapse of Silicon Valley Bank. Home prices in the U.S. also fell, dropping 1.8% YoY during the four weeks ending on March 12. That represents the biggest decline in over a decade, according to the report.
Homebuying activity overall remains tepid, compared to this time last year, the report states. That’s in part because housing payments are still near historic highs, Redfin said. At $2,556, the typical homebuyer’s monthly payment may be down marginally from last week’s record high, but that’s still up 24% from a year ago. Pending home sales also saw a drop, according to the report, falling 17% YoY.
The collapse of Silicon Valley Bank may also have impacted the Bay Area housing market. Along with the Bay Area, New York, which is home to another regional bank that tumbled, is also feeling the pain in its housing market. According to Redfin, Bay Area buyers may be hitting pause on their search due to the SVB collapse and concerns around ongoing tech layoffs.