Homes in California tend to be very expensive, but there is a city that is seeing a huge drop in home prices, according to a study from Realtor.com.
Real estate listing website released a study It details where home prices are falling after potential buyers saw prices rise during June. The study analyzed 100 metropolitan areas across the country to see where prices fell the most.
The percentage change the city’s housing market has experienced since June determines its ranking.
Stockton, located in San Joaquin County in northern California, ranked eighthThe tenth City to experience remarkable reductions in housing prices. According to the website, the median home price in Stockton is $581,725, down 7.7% from home prices in June.
The study found that many homebuyers from California, most notably in San Francisco, sold their homes during the pandemic and used that money to buy cheaper real estate in nearby areas. The influx of people into the surrounding areas has caused housing prices to rise dramatically.
Now, record high inflation has driven up mortgage rates and lowered the number of eligible buyers who can qualify for a home loan. This also led to lower prices for homes that are still on the market, the study said.
Adrian Rosas, a real estate agent at HomeSmart PV & Associates in Stockton, told Realtor.com that the sale of a $400,000 home is down twice because of the trend. Sellers took an additional $20,000 to make the price appear more attractive to potential buyers, after initially lowering the price by $10,000.
The study found that despite falling prices, home prices in Stockton have risen 7.3% since September 2021.
Austin, Texas has been ranked as the number one city to see a drop in home prices. The median home price in the city is $558,275, which is 10.3% lower than it was in June. Since September 2021, home prices in Austin have increased by 2.2%.
Phoenix, Arizona ranked second on the list.
Spokane, Washington ranked tenthThe tenth In the study. The median home price in the area is $449,900.
The region has seen a 7.4% price drop since June.
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