{"id":772618,"date":"2023-07-26T11:20:06","date_gmt":"2023-07-26T15:20:06","guid":{"rendered":"https:\/\/www.marketnewsdesk.com\/index.php\/luxury-home-prices-post-double-digit-drops-in-the-bay-area-seattle\/"},"modified":"2023-07-26T11:20:06","modified_gmt":"2023-07-26T15:20:06","slug":"luxury-home-prices-post-double-digit-drops-in-the-bay-area-seattle","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/luxury-home-prices-post-double-digit-drops-in-the-bay-area-seattle\/","title":{"rendered":"Luxury Home Prices Post Double-Digit Drops in the Bay Area, Seattle"},"content":{"rendered":"<p>        <!--.bwalignc { text-align: center; list-style-position: inside }body {font:normal small Arial,Helvetica,sans-serif;color:#000;background-color:#fff;padding:24px;margin:0;} a img {border:0;} h3 {font-size:medium;color:#000;margin:0 0 1em 0; text-align:center;}-->  <\/p>\n<p class=\"bwalignc\"><b>Luxury Home Prices Post Double-Digit Drops in the Bay Area, Seattle<\/b><\/p>\n<p class=\"bwalignc\"><i>Luxury home prices in the Bay Area and Seattle fell between 10% and 13% in the second quarter, more than anywhere else in the country. Nationwide, luxury prices rose 5% from a year earlier.<\/i><\/p>\n<p>SEATTLE&#8211;(<a href=\"http:\/\/www.businesswire.com\">BUSINESS WIRE<\/a>)&#8211;<br \/>\n(NASDAQ: RDFN) \u2014 Luxury home prices in San Francisco are falling faster than anywhere else in the nation, according to a new <a rel=\"nofollow\" href=\"https:\/\/cts.businesswire.com\/ct\/CT?id=smartlink&amp;url=https%3A%2F%2Fwww.redfin.com%2Fnews%2Fluxury-home-market-june-2023&amp;esheet=53481004&amp;newsitemid=20230726555985&amp;lan=en-US&amp;anchor=report&amp;index=1&amp;md5=9b0fa946fa35da6deb479956f136963e\">report<\/a> from Redfin (<a rel=\"nofollow\" href=\"https:\/\/cts.businesswire.com\/ct\/CT?id=smartlink&amp;url=https%3A%2F%2Fwww.redfin.com%2F&amp;esheet=53481004&amp;newsitemid=20230726555985&amp;lan=en-US&amp;anchor=www.redfin.com&amp;index=2&amp;md5=9e8353ea2c050e2ecb7e333f87d7de1a\">www.redfin.com<\/a>), the technology-powered real estate brokerage.<\/p>\n<p>\nThe median sale price of luxury homes in San Francisco fell a record 12.7% year over year to $4.8 million in the second quarter\u2014the largest decline among the 50 most populous U.S. metropolitan areas. While $4.8 million may not sound like a bargain, it is compared with the $5.5 million record high hit a year earlier.<\/p>\n<p>\nThree other pricey West Coast tech hubs also saw double-digit declines. In Seattle, luxury sale prices decreased a record 12.3% to $2.5 million\u2014the second biggest drop in the country. Next came Oakland, CA (-11.1% to $2.8 million) and San Jose, CA (-10.3% to $4.3 million).<\/p>\n<p>\n\u201cBuyers are getting big discounts on high-end condos in San Francisco right now\u2014especially those under 1,000 square feet,\u201d said local <a rel=\"nofollow\" href=\"https:\/\/cts.businesswire.com\/ct\/CT?id=smartlink&amp;url=https%3A%2F%2Fwww.redfin.com%2Fpremier&amp;esheet=53481004&amp;newsitemid=20230726555985&amp;lan=en-US&amp;anchor=Redfin+Premier&amp;index=3&amp;md5=4401dd48989f609b6338e593701fe36a\">Redfin Premier<\/a> real estate agent <a rel=\"nofollow\" href=\"https:\/\/cts.businesswire.com\/ct\/CT?id=smartlink&amp;url=https%3A%2F%2Fwww.redfin.com%2Freal-estate-agents%2Fali-mafi&amp;esheet=53481004&amp;newsitemid=20230726555985&amp;lan=en-US&amp;anchor=Ali+Mafi&amp;index=4&amp;md5=099bc604098a78f74638cfb481ce6625\">Ali Mafi<\/a>. \u201cThose homes are having trouble selling, and some sellers are losing a lot of money.\u201d<\/p>\n<p>\nNationwide, luxury sale prices are still higher than they were last year. The median sale price of luxury homes rose 4.6% year over year to a record $1.2 million in the second quarter. By comparison, the median sale price of non luxury homes climbed 1.5% to a record $340,000. While homebuyer demand has slowed across the board this year, prices are being propped up by a lack of inventory, which is fueling competition in many markets.<\/p>\n<p>\nLuxury housing prices in expensive coastal areas have taken a relatively big hit because those markets were already among the most expensive in the nation, meaning prices had more room to fall. Additionally, tech hubs have been disproportionately impacted by stock-market declines and tech layoffs, which have diminished buying power for high-end house hunters. In San Francisco, increasing housing supply is also likely contributing to the drop in prices; the metro was one of just three that saw new listings rise in the second quarter.<\/p>\n<p>\nBut the stock market\u2019s recent rally and easing recession worries, along with declining prices, may be starting to bolster high-end home purchases. Luxury sales in San Francisco fell just 4% year over year in the second quarter\u2014a smaller drop than any other major metro\u2014following more than a year of double-digit declines.<\/p>\n<p>\nRelatively affordable East Coast markets experienced the largest price increases. In New Brunswick, NJ, the median sale price of luxury homes rose 12.1% year over year to $1.8 million\u2014the largest increase among the 50 biggest metros. Next came Charlotte, NC (9.2%), Newark, NJ (9.2%), Orlando, FL (8.8%) and Virginia Beach, VA (7.8%).<\/p>\n<p><b>Luxury Home Listings Fall Roughly Half as Fast as Non Luxury Listings<\/b><\/p>\n<p>\nNew listings of luxury homes fell 17.1% year over year in the second quarter, while those of non luxury homes plunged a record 29.8%.<\/p>\n<p>\n\u201cHigh mortgage rates are prompting many middle-income homeowners to stay put, but wealthy homeowners can often afford to move even if it means taking on a higher rate and monthly payment,\u201d said Redfin Chief Economist Daryl Fairweather. \u201cWealthy buyers are also more likely to pay in cash, meaning they\u2019re less likely to be deterred by elevated mortgage rates.\u201d<\/p>\n<p>\nLuxury listings are also holding up relatively well due to an increase in homebuilding. Newly built homes tend to be more expensive, meaning they often fall into the luxury tier. With so few people listing homes, builders are cashing in on being the only game in town.<\/p>\n<p>\nNationwide, the total number of luxury homes on the market fell just 2.4% in the second quarter, the smallest decline since 2020, while non luxury supply plunged a record 18.8%.<\/p>\n<p><b>Luxury Home Sales Post Smallest Decline in a Year<\/b><\/p>\n<p>\nLuxury home sales fell 24.1% year over year in the second quarter. While that\u2019s a substantial decline, it\u2019s the smallest in a year. Non luxury sales dropped 19.4%. The decrease in home sales has eased across the board as Americans have grown accustomed to high mortgage rates, bringing some buyers off the sidelines.<\/p>\n<p>\nThe gap between luxury and non luxury sales is shrinking; at the start of the year, luxury sales were down a record 42%, while non luxury sales were down just 31.4%.<\/p>\n<p>\nLuxury sales have consistently declined more than non luxury sales over the last year because people tend to purchase fewer expensive goods during times of economic uncertainty, but the gap is likely narrowing in part due to an improving stock market and easing recession fears.<\/p>\n<p>\n\u201cNormally when the housing market is hurting, it\u2019s the luxury market that\u2019s hurting the most by far, but today\u2019s market is unusual because there isn&#8217;t a recession,\u201d Fairweather said. \u201cWhile a lot of high-end homebuyers remain on the sidelines, many of the ones who are in the market are still willing to spend big.\u201d<\/p>\n<p>\nTo read the full report and methodology, including charts and metro-level data, visit: <a rel=\"nofollow\" href=\"https:\/\/cts.businesswire.com\/ct\/CT?id=smartlink&amp;url=https%3A%2F%2Fwww.redfin.com%2Fnews%2Fluxury-home-market-june-2023&amp;esheet=53481004&amp;newsitemid=20230726555985&amp;lan=en-US&amp;anchor=https%3A%2F%2Fwww.redfin.com%2Fnews%2Fluxury-home-market-june-2023&amp;index=5&amp;md5=ecbc85e51214efe1a59dcaaf404ac671\">https:\/\/www.redfin.com\/news\/luxury-home-market-june-2023<\/a><\/p>\n<p><b>About Redfin<\/b><\/p>\n<p>\nRedfin (<a rel=\"nofollow\" href=\"https:\/\/cts.businesswire.com\/ct\/CT?id=smartlink&amp;url=http%3A%2F%2Fwww.redfin.com&amp;esheet=53481004&amp;newsitemid=20230726555985&amp;lan=en-US&amp;anchor=www.redfin.com&amp;index=6&amp;md5=55c40f9b1347a7028788eaabe6e09aca\">www.redfin.com<\/a>) is a technology-powered real estate company. We help people find a place to live with brokerage, rentals, lending, title insurance, and renovations services. We also run the country&#8217;s #1 real estate brokerage site. Our home-buying customers see homes first with same day tours, and our lending and title services help them close quickly. Customers selling a home in certain markets can have our renovations crew fix up their home to sell for top dollar. Our rentals business empowers millions nationwide to find apartments and houses for rent. Customers who buy and sell with Redfin pay a 1% listing fee, subject to minimums, less than half of what brokerages commonly charge. Since launching in 2006, we&#8217;ve saved customers more than $1.5 billion in commissions. We serve more than 100 markets across the U.S. and Canada and employ over 5,000 people.<\/p>\n<p>\nFor more information or to contact a local Redfin real estate agent, visit <a rel=\"nofollow\" href=\"https:\/\/cts.businesswire.com\/ct\/CT?id=smartlink&amp;url=https%3A%2F%2Fwww.redfin.com%2F&amp;esheet=53481004&amp;newsitemid=20230726555985&amp;lan=en-US&amp;anchor=www.redfin.com&amp;index=7&amp;md5=b0687334d5348f3cb93a0f88f95b94d6\">www.redfin.com<\/a>. To learn about housing market trends and download data, visit the <a rel=\"nofollow\" href=\"https:\/\/cts.businesswire.com\/ct\/CT?id=smartlink&amp;url=https%3A%2F%2Fwww.redfin.com%2Fnews%2Fdata-center%2F&amp;esheet=53481004&amp;newsitemid=20230726555985&amp;lan=en-US&amp;anchor=Redfin+Data+Center&amp;index=8&amp;md5=afcdcd2b5f50142f1228b3ed0e7fea33\">Redfin Data Center<\/a>. To be added to Redfin&#8217;s press release distribution list, email <a rel=\"nofollow\" href=\"mailto:press@redfin.com\">press@redfin.com<\/a>. To view Redfin&#8217;s press center, <a rel=\"nofollow\" href=\"https:\/\/cts.businesswire.com\/ct\/CT?id=smartlink&amp;url=http%3A%2F%2Fpress.redfin.com%2Fphoenix.zhtml%3Fc%3D252734%26p%3Dirol-overview&amp;esheet=53481004&amp;newsitemid=20230726555985&amp;lan=en-US&amp;anchor=click+here&amp;index=9&amp;md5=4b307e35d97ae74e5936ac36ae7f8460\">click here<\/a>.<\/p>\n<p><img decoding=\"async\" alt=\"\" src=\"https:\/\/cts.businesswire.com\/ct\/CT?id=bwnews&amp;sty=20230726555985r1&amp;sid=flmnd&amp;distro=nx&amp;lang=en\" style=\"width:0;height:0\" \/><span class=\"bwct31415\" \/><\/p>\n<p id=\"mmgallerylink\"><span id=\"mmgallerylink-phrase\">View source version on businesswire.com: <\/span><span id=\"mmgallerylink-link\"><a href=\"https:\/\/www.businesswire.com\/news\/home\/20230726555985\/en\/\" rel=\"nofollow\">https:\/\/www.businesswire.com\/news\/home\/20230726555985\/en\/<\/a><\/span><\/p>\n<p><b>Redfin Journalist Services:<br \/>\n<\/b><br \/>Erin Osgood, 206-588-6863<br \/>\n<br \/><a rel=\"nofollow\" href=\"mailto:press@redfin.com\">press@redfin.com<\/a><\/p>\n<p><b>KEYWORDS:<\/b> United States North America California Washington<\/p>\n<p><b>INDUSTRY KEYWORDS:<\/b> Construction &amp; Property Residential Building &amp; Real Estate<\/p>\n<p><b>MEDIA:<\/b><\/p>\n<table cellpadding=\"3\" cellspacing=\"3\">\n<tr>\n<td><font face=\"Arial\" size=\"2\"><b>Logo<\/b><\/font><\/td>\n<\/tr>\n<tr>\n<td><img decoding=\"async\" src=\"https:\/\/mms.businesswire.com\/media\/20230726555985\/en\/1407505\/3\/Redfin_Standard_Web_Logo.jpg\" alt=\"Logo\" \/><\/td>\n<\/tr>\n<tr>\n<td><font face=\"Arial\" size=\"2\"><\/font><\/td>\n<\/tr>\n<\/table>\n","protected":false},"excerpt":{"rendered":"<p>Luxury Home Prices Post Double-Digit Drops in the Bay Area, Seattle Luxury home prices in the Bay Area and Seattle fell between 10% and 13% in the second quarter, more than anywhere else in the country. Nationwide, luxury prices rose 5% from a year earlier. SEATTLE&#8211;(BUSINESS WIRE)&#8211; (NASDAQ: RDFN) \u2014 Luxury home prices in San Francisco are falling faster than anywhere else in the nation, according to a new report from Redfin (www.redfin.com), the technology-powered real estate brokerage. The median sale price of luxury homes in San Francisco fell a record 12.7% year over year to $4.8 million in the second quarter\u2014the largest decline among the 50 most populous U.S. metropolitan areas. While $4.8 million may not sound like a &hellip; <\/p>\n<p class=\"link-more\"><a href=\"https:\/\/www.marketnewsdesk.com\/index.php\/luxury-home-prices-post-double-digit-drops-in-the-bay-area-seattle\/\" class=\"more-link\">Continue reading<span class=\"screen-reader-text\"> &#8220;Luxury Home Prices Post Double-Digit Drops in the Bay Area, Seattle&#8221;<\/span><\/a><\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-772618","post","type-post","status-publish","format-standard","hentry"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.8 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Luxury Home Prices Post Double-Digit Drops in the Bay Area, Seattle - Market Newsdesk<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.marketnewsdesk.com\/index.php\/luxury-home-prices-post-double-digit-drops-in-the-bay-area-seattle\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Luxury Home Prices Post Double-Digit Drops in the Bay Area, Seattle - Market Newsdesk\" \/>\n<meta property=\"og:description\" content=\"Luxury Home Prices Post Double-Digit Drops in the Bay Area, Seattle Luxury home prices in the Bay Area and Seattle fell between 10% and 13% in the second quarter, more than anywhere else in the country. Nationwide, luxury prices rose 5% from a year earlier. SEATTLE&#8211;(BUSINESS WIRE)&#8211; (NASDAQ: RDFN) \u2014 Luxury home prices in San Francisco are falling faster than anywhere else in the nation, according to a new report from Redfin (www.redfin.com), the technology-powered real estate brokerage. The median sale price of luxury homes in San Francisco fell a record 12.7% year over year to $4.8 million in the second quarter\u2014the largest decline among the 50 most populous U.S. metropolitan areas. 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Market Newsdesk","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.marketnewsdesk.com\/index.php\/luxury-home-prices-post-double-digit-drops-in-the-bay-area-seattle\/","og_locale":"en_US","og_type":"article","og_title":"Luxury Home Prices Post Double-Digit Drops in the Bay Area, Seattle - Market Newsdesk","og_description":"Luxury Home Prices Post Double-Digit Drops in the Bay Area, Seattle Luxury home prices in the Bay Area and Seattle fell between 10% and 13% in the second quarter, more than anywhere else in the country. Nationwide, luxury prices rose 5% from a year earlier. SEATTLE&#8211;(BUSINESS WIRE)&#8211; (NASDAQ: RDFN) \u2014 Luxury home prices in San Francisco are falling faster than anywhere else in the nation, according to a new report from Redfin (www.redfin.com), the technology-powered real estate brokerage. The median sale price of luxury homes in San Francisco fell a record 12.7% year over year to $4.8 million in the second quarter\u2014the largest decline among the 50 most populous U.S. metropolitan areas. While $4.8 million may not sound like a &hellip; Continue reading \"Luxury Home Prices Post Double-Digit Drops in the Bay Area, Seattle\"","og_url":"https:\/\/www.marketnewsdesk.com\/index.php\/luxury-home-prices-post-double-digit-drops-in-the-bay-area-seattle\/","og_site_name":"Market Newsdesk","article_published_time":"2023-07-26T15:20:06+00:00","og_image":[{"url":"https:\/\/cts.businesswire.com\/ct\/CT?id=bwnews&amp;sty=20230726555985r1&amp;sid=flmnd&amp;distro=nx&amp;lang=en","type":"","width":"","height":""}],"author":"Newsdesk","twitter_card":"summary_large_image","twitter_misc":{"Written by":"Newsdesk","Est. reading time":"5 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.marketnewsdesk.com\/index.php\/luxury-home-prices-post-double-digit-drops-in-the-bay-area-seattle\/#article","isPartOf":{"@id":"https:\/\/www.marketnewsdesk.com\/index.php\/luxury-home-prices-post-double-digit-drops-in-the-bay-area-seattle\/"},"author":{"name":"Newsdesk","@id":"https:\/\/www.marketnewsdesk.com\/#\/schema\/person\/482f27a394d4fda80ecb5499e519d979"},"headline":"Luxury Home Prices Post Double-Digit Drops in the Bay Area, Seattle","datePublished":"2023-07-26T15:20:06+00:00","mainEntityOfPage":{"@id":"https:\/\/www.marketnewsdesk.com\/index.php\/luxury-home-prices-post-double-digit-drops-in-the-bay-area-seattle\/"},"wordCount":1093,"image":{"@id":"https:\/\/www.marketnewsdesk.com\/index.php\/luxury-home-prices-post-double-digit-drops-in-the-bay-area-seattle\/#primaryimage"},"thumbnailUrl":"https:\/\/cts.businesswire.com\/ct\/CT?id=bwnews&amp;sty=20230726555985r1&amp;sid=flmnd&amp;distro=nx&amp;lang=en","inLanguage":"en-US"},{"@type":"WebPage","@id":"https:\/\/www.marketnewsdesk.com\/index.php\/luxury-home-prices-post-double-digit-drops-in-the-bay-area-seattle\/","url":"https:\/\/www.marketnewsdesk.com\/index.php\/luxury-home-prices-post-double-digit-drops-in-the-bay-area-seattle\/","name":"Luxury Home Prices Post Double-Digit Drops in the Bay Area, Seattle - 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