Property prices are continuously increasing in many parts of the world, but there is one place where the prices have fallen drastically. House prices in this city have fallen by 40 percent, and now these prices have reached pre-Corona levels. Know the reasons behind this decline.
Would you like to buy a house in a city where properties are selling at half the price? It may sound a bit strange, but this is really happening. A house worth Rs 9 crore in San Francisco has now been sold for just Rs 5 crore.
San Francisco: Reason for the decline in property market
This city is not located in India, but in the US state of California. There has been a huge decline in property prices in San Francisco, also known as the ‘Golden City’. The property prices here have come down to the pre-Corona level. San Francisco is one of the expensive cities of America, but now houses here have become very cheap.
Reason for fall in prices
The main reason for this decline is people’s loss of jobs. According to a report by SFGATE, layoffs are taking place in the tech sector, due to which people are leaving the city by selling their houses. According to Wolfe Street data, home prices here have now reached 2015 levels.
How much has the price decreased?
Single-family home prices in San Francisco are set to fall 15 percent from their peak in 2022. According to the SFGATE report, now the average price of these houses has become 1.39 million dollars (about Rs 1.15 crore). At the same time, property prices here had doubled between 2012 and 2022, but in the last two years it has decreased by 30 percent.
San Francisco’s Millennium Tower has seen a 44 percent decline in flat prices. Whereas a decade ago this flat was being sold for 11 lakh dollars (about Rs 9.40 crore), now it is being sold for 6.15 lakh dollars (about Rs 5.25 crore).
Effect of layoffs in the tech sector
The tech sector in America is struggling with the economic recession these days. According to Wolf Street, 20 percent of workers in this sector have been laid off in the last two years. According to SFGATE, more than 10,000 people could lose their jobs in San Francisco in 2023. Due to this, people are forced to sell their houses and leave the city, due to which property prices are falling.
This decline in property prices in San Francisco is an example of how economic changes and job conditions in a city can affect the property market. While property prices elsewhere are skyrocketing, people in San Francisco are taking advantage of the opportunity to buy homes at bargain prices.