A condo in downtown San Francisco dropped by nearly 30 percent since 2019, revealing the real estate market's cooldown in prices since the pandemic. During the pandemic, many California and Bay area residents fled their high-price homes and rentals as remote work opened up cheaper areas of living. And four years since the coronavirus hit, the real estate market is still adjusting even as home sale prices reached record highs across the country.
A one-bedroom unit located at 1235 Howard St in San Francisco is now listed for sale at $798,000. Just five years ago, in 2019, the same condo sold for $1.1 million, a post from San Francisco real estate agent Rohin Dhar revealed on social media platform X.
San Francisco has been recording some of the biggest price drops in real estate across the country. In May 2022, the average San Francisco home was priced at nearly $1.5 million.
After a major drop over the next year and a leveling off since, the average home price in the city is now just $1.2 million, according to Zillow. While generally, San Francisco's tech companies have caused real estate values to skyrocket over the past several years, other factors have brought the value of homes down, title and escrow expert Alan Chang said.
"Unfortunately, quality of living, including crime, has been equally staggering," Chang told Newsweek . "As crime has pushed many residents to look for alternatives, the demand has softened, which has started to normalize the real estate values in this m.