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Home prices in Oakland, California have plummeted nearly 10 percent from this time last year, evaporating the equity owners spent years growing and sliding the housing market back to levels not seen in a decade.
The average home value in Oakland is $716,248, down roughly 8.5% compared to last year, according to the most recent Zillow data from March.
After adjusting for inflation, the real estate crisis is even more bleak — representing a year-over-year decline of more than $90,000 or about 11.4%, the San Francisco Chronicle noted.
Oakland is now tied with Cape Coral, Florida for the country’s worst housing market.
A quick search on Zillow, showed multiple houses in the last month reducing prices anywhere from $20,000 to more than $60,000 as demand softens.
Home values in the major California town have dropped by 28% since March 2019, and according to the Chronicle the last time prices were this low was in 2015 — a stark contrast from its peak when the typical value topped a million dollars.
“I know several people who were like, ‘Can I break even if I sell my condo in downtown Oakland, next to Lake Merritt?’” Susie Wyshak, a real estate agent located in the East Bay told the Chronicle.
But not all neighborhoods are suffering the same crippling housing market, with another realtor telling he outlet “Oakland is behaving (like) several little micro-markets rather than one market.”
For example, while certain area codes in the city’s downtown area have dropped by 16% other residential neighborhoods, like Rockridge, have only declined by about 5% from last year, the paper noted.
Rising interest rates and a cost of living that many view as an affordability crisis has decimated Oakland, a city that isn’t seeing the same tech resurgence like its neighboring city across the water in San Francisco.
“I think it’s really, purely the economy at this point,” realtor Andrea Gordon told the Chronicle.
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