Redfin Reports Nearly 20% of San Francisco Home Sellers Take a Loss on Their Sale, More Than Four Times the National Share

(NASDAQ: RDFN) — Nearly one of five (17.8%) homes that sold in San Francisco during the three months ending February 29 sold at a loss, according to a new report from Redfin (redfin.com), the technology-powered real estate brokerage. That’s comparable with the 17.9% share hit during the three months ending January 31, which was the highest in 11 years.

That’s a higher share than any other metro, and it’s more than four times the national share of 4.3%. The national share of sellers taking a loss is the highest it has been since May 2021, but the share has been fairly stable over the past two years, hovering between 2% and 4.5%.

In San Francisco, the typical homeowner who sold at a loss parted with their home for $155,500 less than they bought it for, the largest dollar loss of any major metro. Nationwide, the median loss was $39,912.

This is according to a Redfin analysis of county records and MLS data across the 50 most populous U.S. metros.

Some San Francisco sellers are losing money because they bought when prices peaked during the pandemic

San Francisco home sellers are far more likely than sellers in the rest of the country to lose money because home prices there have dropped dramatically since the pandemic homebuying boom. Still, the Bay Area is home to the most expensive real estate market in the U.S.

San Francisco’s median sale price peaked at $1.66 million in April 2022, and has since fallen 15% ($250,000) to $1.41 million as of February. The typical person who bought in San Francisco at nearly any point in 2021 or 2022, when the housing market was red hot due to ultra-low mortgage rates, would have taken a loss if they sold during the first few months of this year.

Local Redfin Premier agent Christine Chang said San Francisco’s market is stumbling more than other parts of the Bay Area. “Home prices have fallen from their peak, especially when it comes to condos,” Chang said. “It’s not just because mortgage rates are high. San Francisco has lost some of its appeal post-pandemic. A lot of tech employers and big-name retailers have moved out of the city, and some of my clients have reported they’re leaving the area because they don’t feel as safe as they used to.”

It’s worth noting that most San Francisco homeowners who bought during the last two to three years are hanging on to their home. Some of the homeowners who are selling are likely doing so because a life event such as divorce or job relocation has necessitated it.