The report says that five of the ten housing markets that have cooled down the fastest so far this year are located in Northern California. San Jose is leading the nation in a housing market cooldown, according to the report, with the supply of homes up 10% year-to-year in May.
In Sacramento, the Redfin report found that home prices soared 44% during the pandemic pricing many buyers out of the market. Stockton ranked as the fourth fastest cooling housing market in the U.S. in the report.
“There is good news for some buyers. People who can afford to buy right now could get something for $100,000 or $200,000 less than a few months ago, largely because homes are often no longer selling above asking price,” said San Francisco Redfin agent Joanna Rose. “They’ll have a higher monthly payment for now due to the rise in mortgage rates but can refinance later if rates come down.”
The report says that even if a housing market cooldown leads to declining home prices in the Bay Area, the area is likely to remain one of the most expensive areas of the nation.