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A drop in housing prices by about 7% translates to more than a hundred thousand dollars in savings on a typical Bay Area home. Scott Budman explains why.
A drop in housing prices by about 7% translates to more than a $100,000 in savings on a typical Bay Area home.
But a rise in mortgage rates to about 7% all but erases that savings.
"In the Bay Area, you're looking at thousands of dollars a month more in mortgage than in just January of this year," said Nicole Bachaud, a senior economist at Zillow.
For many, especially young buyers, the drop in housing prices is still not down far enough.
Housing prices are coming down in the Bay Area and are expected to keep coming down -- next year. The California Association of Realtors is predicting home prices here will drop about 9% more -- in 2023 and they also expect sales to slow as the market cools. NBC Bay Area's Raj Mathai spoke to Gea Carr, of Coldwell Banker Realty, for some insight.
"If I do well in my job, I can save up and eventually buy a house," San Jose resident Julien Chairez said. "But in this economy, and in this market in this area, I still don't think it's possible."
There are more numbers heading in a downward direction:
- In San Jose, fewer than 40% of homes that sold went for above asking price last month -- at this time last year the number was 70%.
- In San Francisco, 60% of homes sold for above asking price last month compared to 80% last year.
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