The monthly mortgage payment on a typical home in the Bay Area jumped more than 50% from a year ago, soaring to over $9,000 in San Jose and above $8,000 in San Francisco, according to a report from Zillow.
The online real estate marketplace reported Tuesday that housing affordability across the nation is at a 15-year low, adding that buying a typical U.S. home at the current average mortgage rate of 5.78% would mean monthly payments of $2,127, 51% higher than a year ago.
As is customary, that number quadruples in the Bay Area’s two largest cities. Here are some details from Zillow’s report:
Housing in San Jose metro
- The typical home value is $1,706,565, up 22.4% year over year and 37.6% since 2019.
- Mortgage payments on a typical home are $9,136 a month. That’s up 57.1% compared to May 2021 and 5.4% over April.
- Typical rents are $3,295, up 12.1% since May 2021.
- The share of listings with a price cut is 8.1%, compared to 4.7% in April
Housing in San Francisco metro
- The typical home value is $1,500,189, up 18.5% year over year and 33.6% since 2019.
- Mortgage payments on a typical home are $8,117 a month. That’s up 52.8% compared to May 2021 and 5.4% over April.
- Typical rents are $3,214, up 10.3% since May 2021.
- The share of listings with a price cut is 8.3%, compared to 5.8% in April
Zillow added that mortgage payments now are higher than rent in 45 of the 50 largest U.S. metros, a sharp reversal from as recently as 2019.
Also, demand for homes has pulled back in response to the latest market shift, easing price growth, slowing sales, boosting inventory and raising the share of listings with a price cut, Zillow reported.