Nearly 20% Of Recent San Francisco Home Sales Were Underwater | ZeroHedge

Nearly 20% of homes sold in San Francisco during the three months ending Feb. 29 sold at a loss. What's more, the typical SF homeowner took $155,500 less than they bought it for, which is 400% more in dollar terms than the nationwide median loss of $39,912 over the same period, Redfin reports, citing an internal analysis of county records and MLS data across the US.

"Home prices have fallen from their peak, especially when it comes to condos," said real estate agent Christine Chang. "It’s not just because mortgage rates are high. San Francisco has lost some of its appeal post-pandemic. A lot of tech employers and big-name retailers have moved out of the city, and some of my clients have reported they’re leaving the area because they don’t feel as safe as they used to."

Meanwhile…

According to the same report, Detroit came in second in terms of homes selling at a loss (10.8%) during the three months ending February 29, followed by three other Rust Belt and Midwestern metros: Cleveland (8.2%), St. Louis (8.1%) and Chicago (7.9%).

Least likely to take a loss?

Homeowners in New England and Southern California were least likely to sell at a loss – with just 1.2% of homeowners who sold during the same period losing money.

This is followed by Boston, Anaheim, CA, Fort Lauderdale, FL, and San Diego, where roughly 2% of homes sold for less than the seller originally paid in each of those metros.

That said, the vast majority of sellers are still profitable on their home sales – even in San Francisco, where 82% of sellers took in more than they paid – with the typical seller banking $482,000 more than their cost basis over the period analyzed. Nationwide, 96% of sellers are postive on their sales, with a median gain of $196,016 thanks to the national media home price sitting just 5% below the all-time high set in mid-2022.

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