By Stephanie Mojica
Homes are selling for less than the asking price in San Francisco, and some experts speculate that the same thing could happen in Southern California, per the Los Angeles Times.
The report stopped short of calling the San Francisco Bay Area a buyer’s market, but labeled it a buyer-friendly market.
Before the challenges of the COVID-19 pandemic, massive tech industry layoffs, and high mortgage interest rates, homes in the Bay Area sold for 113% of the asking price.
As of December 2022, the sale-to-list ratio was 99.8% — the lowest it had been in nearly six years.
The usual figure is 105% in Los Angeles, but that has dipped to 98.5% for the first time in over four years.
Experts interviewed by the Los Angeles Times believe that this trend will continue in both San Francisco and Los Angeles. The stock benefits that tech employees often use for down payments have significantly less value now. Also, the increased trend of remote work is leading people in multiple industries to seek cheaper housing options in cities such as San Diego, Sacramento, and Phoenix.
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