Million-Dollar Homes Are Less Common As High Mortgage Rates Cool The Market

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Just over 80% of San Francisco homes are worth at least $1 million.

The portion of homes worth seven figures has nearly doubled since before the pandemic, and the typical home is worth significantly more. That’s due mostly to home prices soaring as demand skyrocketed during the pandemic and partly to the general uptick in home values over time.Bay Area, Seattle and New York are losing million-dollar homes the fastest

The Bay Area has seen outsized drops because home prices there have dropped more than in other places. San Francisco’s median sale price fell 9.4% year over year in January and Oakland’s fell 7.8%, two of the three largest declines in the U.S. Rising mortgage rates have hit expensive markets particularly hard because homes there are so expensive, with even a small bump in rates translating to a big increase in monthly mortgage payments.

Still, the vast majority of homes in the Bay Area are worth at least a million dollars, and more than a quarter of homes in Seattle and New York hit that mark.Roughly 1 in 7 of Miami homes are worth at least $1 million, up from 11.5% a year ago, the biggest increase of the metros in this analysis. The next-biggest upticks are in North Port, Florida , Anaheim , Nashville and West Palm Beach, Florida .

 

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