San Francisco home prices no longer among the highest in the nation

San Francisco (cron) — San Francisco’s general home prices are still astronomical, but no longer among the highest in the nation, according to a new report from Zillow. Home prices in SF are $1,128,205, a significant drop from last year when they were actually up 7.7%.

Zillow’s report cites low inventories and rising mortgage rates as factors for increased competition in the SF market.

With home prices down from last year, some prospective sellers have decided to hold off for now. This exacerbates SF’s inventory shortage situation, Zillow said.

Compared to last year, new listings decreased by 37% and total inventory decreased by 32% from last year. Looking further back, total inventories are down 33% compared to pre-pandemic 2019.

New pending sales were also down, down 5.7% month-over-month and down 4% compared to this time last year.

According to Zillow, SF prices are well above the typical U.S. home price, which topped $350,000 for the first time. While general housing prices in San Francisco are still high, they are no longer among the highest in the nation.

The distinction now belongs to another Bay Area city, San Jose, where Zillow’s June Home Value Index was $1,460,735.

In terms of rents, San Francisco also slipped, with San Diego overtaking City by the Bay to become the third most expensive place to rent in the nation.