雅虎香港財經 Redfin: Million-dollar home listings are on the decline
The marketshare of U.S. homes worth at least $1 million has dropped to 7% from the previous peak of 8.6%, according to the recent Redfin (RDFN) housing value index.
“Home values are coming down from their peak and fewer sellers [can] fetch seven figures.” Chen Zhao, Redfin’s economic research lead, said in a statement.
Currently, there are around 10 million homes in the U.S. valued at more than $1 million, down from 12 million units last year, based on estimates from the U.S. Census Bureau.
The cooling market, of course, also extends beyond pricey properties—the median U.S. home-sale price declined for the first time in decades to $350,246, dropping 0.6% year-over-year in February. As for the million-dollar properties, the decline was inevitable: mortgage rates have been climbing—and the number of million-dollar-plus homes had soared in recent years. For example: The percentage of million-dollar properties, compared to all homes in the U.S., more than doubled to 8.6% during the pandemic, from only 4.2% back in January 2020.
However, not all regions saw the same decline. Florida, especially Miami, has seen an increase in the number of million dollar homes. Around one in seven properties in Miami is at least one million dollars in value in 2022, a jump from one in nine a year ago. West Palm Beach is also seeing an uptick in million-dollar homes, with nearly 2% more houses crossing that value line last year.
On the other hand, certain parts of the country saw significant decline - especially in New York, the San Francisco Bay Area, and Seattle. Cities that are tech hubs —i.e. employ a lot of folks— lost the most million dollar homes in 2022. Although eight out of ten homes in the Bay Area, encompassing Silicon Valley, are still worth over a million dollars, that is a steep drop for the region where almost nine out of ten houses were over a million dollars a year ago, said Redfin.
The big million-dollar listing losers in the greater Bay Area? Oakland and San Jose.
Oakland takes the lead with nearly 9,000 fewer homes worth more than a million in 2022 compared to the year before; median home prices dropped nearly 17%. San Jose had about 8,500 fewer homes over $1 million dollars versus a year ago; median home prices in San Jose declined 6%. The problem: tech layoffs and remote work policies that allow employees to ply their craft in other parts of the country. The stock market slump hasn't helped either.
Seattle and New York also had their million-dollar home woes. Seattle saw a year-over-year drop of 3.4 percentage points to 27.5% in million-dollar home market share. New York saw a year-over-year drop of 3 percentage point to 29.5% in market share.
"Now isn’t the time for buyers who need to take out a loan to get a good deal: Buying an $800,000 home today would cost more per month than buying a million-dollar home a year ago.” Zhao said.
Rebecca is a reporter for Yahoo Finance and previously worked as an investment tax certified public accountant (CPA).
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