Home prices are falling in this California city

California homes are generally expensive, but one city is seeing a significant drop in home prices, according to a survey by Realtor.com.

The real estate website has published a study detailing where house prices are falling after potential buyers saw high prices in June. The study analyzed 100 metropolitan areas across the country to see where prices fell the most.

The percentage change in a city’s housing market since June determined the ranking.

Located in San Joaquin County in Northern California, Stockton was ranked the 8th city with notable home price reductions. According to the website, the median home price in Stockton is $581,725, a 7.7% drop from June home prices.

Many California homebuyers, particularly in San Francisco, sold their homes during the pandemic and used that money for cheaper real estate in neighboring areas, the study found. The influx of people into the surrounding areas caused house prices to rise significantly.

Now record high inflation has resulted in higher mortgage rates, reducing the number of eligible buyers qualifying for a home loan. This has also lowered the prices of homes still on the market, the study said.

Adrian Rosas, a real estate agent at HomeSmart PV & Associates in Stockton, told Realtor.com that a $400,000 home sale has failed twice as a result of this trend. The sellers took an additional $20,000 to make the price more attractive to potential buyers after initially lowering the price by $10,000.

Although prices are falling, home prices in Stockton have risen by 7.3% since September 2021, the study finds.

Austin, Texas was ranked as the largest city to experience declines in home prices. The median home price in the city is $558,275, which is 10.3% lower than in June. Since September 2021, Austin home prices have risen by 2.2%.

Phoenix, Arizona is second on the list.

Spokane, Washington ranked 10th in the study. The median home price in the area is $449,900.

The area has seen a price drop of 7.4% since June.

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