Condo owners in parts of California are cutting their asking prices by up to 40% on Zillow, the real estate marketplace app.
As of Wednesday morning, there are 8,476 condos listed for sale on Zillow in California. Of these, 1,973 have had their asking prices reduced. Most of these price cuts are in San Francisco, San Jose, and Los Angeles.
Vacation rental investor Rohin Dhar, known for sharing dramatic market price drops on social media, highlighted a San Francisco condo with a significant price decrease. This 2-bedroom, 2-bathroom condo, originally sold for over $2 million in May 2015, had its price slashed to $1,780,000 in May 2022, then to $1,680,000. The listing was removed and re-listed in September 2022 for $1,595,000, dropping further to $1,495,000 a month later. Despite its prime location and stunning views, it was listed again on May 20 for $1,275,000 and finally sold for $1,167,500 on June 3—over 41% less than its 2015 sale price, even as overall house prices in the city rise.
In April, Redfin data showed the median sale price of a home in San Francisco was $1,400,000, a 3.7% increase from the previous year. Prices had dropped in late 2023 due to a housing market correction and rising mortgage rates, with Redfin recording a 6.7% year-over-year decline in December 2023 to $1.2 million. Since then, prices have been climbing back but have not reached the April 2022 peak of $1.6 million.
Another listing shared by Dhar showed a Russian Hill condo, originally purchased for $3.2 million in 2016, selling for $2.25 million on June 3—a $950,000 decrease, or about 29% less than its previous price.
San Francisco’s condo price drop is linked to challenges since the pandemic, including a mass exodus of workers leaving downtown offices empty. High living costs and mortgage rates around 7% also play a role, prompting sellers to reduce prices to attract buyers.
