Home prices are falling in this California city
Homes in California tend to be expensive, but one city is seeing a significant drop in home prices, according to a study by Realtor.com.
The real estate listings website released a study detailing where home prices are falling after potential buyers saw high prices in June. The study analyzed 100 metropolitan areas across the country to see where prices fell the most.
The percentage change a city’s housing market has experienced since June determined the ranking.
Stockton, located in San Joaquin County in Northern California, was ranked 8thth city to experience remarkable housing price reductions. According to the website, the median home price in Stockton is $581,725, a decrease of 7.7% from June home prices.
Many California home buyers, particularly in San Francisco, sold their houses during the pandemic and used the money for cheaper properties in nearby areas, the study found. The influx of people in the surrounding areas caused house prices to rise significantly.
Now, record high inflation has resulted in higher mortgage interest rates which have reduced the number of qualified buyers who can qualify for a mortgage. This has also reduced the prices of homes still on the market, the study said.
Adrian Rosas, a Realtor with HomeSmart PV & Associates in Stockton, told Realtor.com that a $400,000 home sale fell through twice because of this trend. The sellers took off another $20,000 to make the price seem more attractive to potential buyers, after reducing the price by $10,000.
Although prices are falling, home prices in Stockton have increased by 7.3% since September 2021, the study found.
Austin, Texas was ranked as the number one city experiencing a drop in home prices. The median home price in the city is $558,275, which is 10.3% lower than where it was in June. Since September 2021, home prices in Austin have increased by 2.2%.
Phoenix, Arizona ranked second on the list.
Spokane, Washington was ranked 10thth in the study. The median home price in the area is $449,900.
The area had a price decrease of 7.4% since June.
