Home prices drop in several notoriously expensive California cities

In San Francisco, the median list price is currently $997,500, with 27.4% of listings experiencing price reductions,Photo byChris LawtononUnsplash

The U.S. housing market is showing signs of adjustment following the Federal Reserve's interest rate cut in September, which lowered mortgage rates to 6.2%, the lowest since last year. Despite a slight uptick in rates since then, the trend indicates an increase in homes on the market, prompting sellers to reduce prices to attract buyers. In California, the median home price has seen a notable decrease, falling nearly $5,000 from August to September, settling at $425,000.

In San Francisco, the median list price is currently $997,500, with 27.4% of listings experiencing price reductions, reflecting a 1.2 percentage point increase in reductions compared to last year. Riverside is similarly adjusting, with a median price of $599,000 and 28.1% of listings reduced in price. In San Jose, where the median list price is a striking $1,432,170, 28.2% of homes have seen reductions, with one notable property dropping $50,000 to $1.2 million. These developments highlight the changing dynamics in California's housing market, offering potential buyers more opportunities as sellers adjust to the current economic climate.