Peninsula Home Values Lose $750K In 2022

SAN MATEO COUNTY, CA — A global drop in home prices has hit Silicon Valley particularly hard.

San Mateo County homes lost a third of their value in 2022 in year that saw prices for single-family homes fall precipitously throughout Silicon Valley, according to newly released data from the California Association of Realtors.

San Mateo County’s single-family median homes lost $750,000 in value last year, plunging from an all-time high of $2,250,000 in April to $1,500,000 in December.

Median single-family home values in Santa Clara County fell approximately $485,000, from $1,950,000 inAprilto $1,465,000 in December.

Aggressive fiscal policy is seen as the primary driver in decreased demand, with rising interest rates that aim to curb inflation driving a global residential real estate downturn.

The global housing market is facing stiff headwinds, Adam Slater, a lead economist at Oxford Economics told The Financial Times.

“This is the most worrying housing market outlook since 2007-2008, with markets poised between the prospect of modest declines and much steeper ones,” Slater told the news outlet.

“The ongoing surge in mortgage rates in advanced economies threatens to push some housing markets into steep downturns.”

Ongoing tech layoffs, the cryptocurrency crash, and general uncertainty about the economy have fueled a drop in demand.

“As with many markets around the country, there are certain ‘pockets’ that will always do well and some that will also reflect the challenging environment of high-interest rates, large employment layoffs and seasonal slowing leading to market uncertainty,” Tim Yee, the President of RE/MAX Gold Bay Area told KRON.