Categoria:

California condo sells for lowest price in 18 years

Autor: Omar Mohammed

A one-bedroom condo in the Yerba Buena of San Francisco is on the market for nearly $670,000. The property’s listed price on Zillow is less than its value has been since 2004, when it sold for $499,000, according to records on the real estate platform.

The home was at one point in May 2019 listed for sale for nearly $1.1 million but the listing was removed in June of that year. The next time it went on the market, it was valued at 32.5 percent less at $729,000. Since then, the unit has seen its pricing go down to its current listed price of $669,000.

Read more: How to Sell Your Home

The trajectory of the price of the home appears to correlate with the fluctuations of property values in the San Francisco area. Homes are expensive in San Francisco. The median list price in the city is close to $1.2 million and they tend to sell a little higher than that at about $1.3 million, according to Zillow.

But the market in the San Francisco-Oakland-Hayward area has plunged by nearly 11 percent on a yearly basis from the height of the pandemic when it shot up almost 18 percent, according to the Federal Reserve Economic Data, which cited data from another real estate platform Realtor.com.

Bay area
An aerial view of the San Francisco-Oakland Bay Bridge on April 30, 2024, in San Francisco, California. A one-bedroom condo is listed for the lowest price in 18 years. Justin Sullivan/Getty Images

There may be a myriad of reasons why properties in San Francisco are seeing prices drop. The high cost of living in the area has contributed to people leaving. Between 2020 to 2023, the Bay Area saw its population drop by 4 percent, which is one of the highest losses compared to other metro areas in the country, according to online rental platform Zumper.

Read more: Find the Lowest Rates From Top Mortgage Lenders

Another reason could be mortgage rates elevated at above 7 percent have made buying less appealing for prospective homeowners which slowed competition and, in turn, caused a fall in prices. San Francisco is a market in flux, according to Norada Real Estate Investments.

“The median home price, which hovered around a dizzying $1.4 million in early 2023, has shown signs of plateauing, with a slight dip in recent months,” they noted. “Rising interest rates…have dampened buyer enthusiasm and impacted affordability, and an increase in available properties. As a result, the frenetic bidding wars of the past may be giving way to a slightly more measured approach.”

The Yerba Buena unit’s pricing could be affected by these dynamics.

“I think this is a pretty normal price reduction obviously for San Francisco. I wouldn’t say it was anything drastically different. I think it’s just the overall market condition has changed because of the interest rate increase,” Jing Fang, a real estate broker with a decade of experience in the Bay Area, told Newsweek.

Buyers are finding it difficult to afford to purchase homes after interest rates went up from the 2.5 percent they were at a few years ago.

Read more: How Much House Can You Afford?

“Now it’s 7 percent, so the monthly payment is higher,” she said.

The listing described the property at Yerba Buena as one of five units. It is a one-bedroom, two-bath space of 1064 square feet.

“The spacious open floor plan with floor-to-ceiling windows features remodeled bathrooms, upgraded wide-plank white oak flooring, an updated kitchen, in-unit laundry, and one-car garage parking,” the listing goes on to note.

Newsweek contacted the listing agent for comment via email on Wednesday.

Uncommon Knowledge

Newsweek is committed to challenging conventional wisdom and finding connections in the search for common ground.

Newsweek is committed to challenging conventional wisdom and finding connections in the search for common ground.

Deja una respuesta

Tu dirección de correo electrónico no será publicada. Los campos obligatorios están marcados con *

Te puede interesar también
como-la-luna-alarga-los-dias-en-la-tierra-–-bbc-news-mundo
Tecnología

Cómo la Luna alarga los días en la Tierra – BBC News Mundo

Fuente de la imagen, Getty Images Author, Redacción Role, BBC News Mundo 21 junio 2024 Hace miles de millones de años, la duración promedio de un día terrestre era de menos de 13 horas. Desde entonces se ha ido alargando lentamente y continúa haciéndolo, por una razón que involucra a la Luna y nuestros océanos.

Leer Más >>
el-bienestar-psicologico-con-de-la-fuente
Salud

El bienestar psicológico con De la Fuente

Los entrenadores de élite, y casi todos los seleccionadores lo son, sostienen que el éxito sólo llega si hay bienestar psicológico en la plantilla. Y eso pasa por hacerles sentirse importantes a todos, del primero al último. Un técnico campeón me confesó un día que tenía jugadores tan buenos que eran igual de importantes los

Leer Más >>

¿Quieres hablar con nosotros en cabina?

Nuestros Horarios en el Estudio:

9am a 11am | 12m a 1pm | 4 a 5 pm | 5 a 6pm

horario del pacifico