San Francisco looks like a deflating Pandemic Housing Bubble—while housing markets in New York and Chicago remain stable

Source: Yahoo! News — 

The home price correction has been fairly mild on a national level, with U.S. home prices falling just 2.5% between June and November.

But on a regional level, the correction in the second half of 2022 was a mixed bag.

Among the 20 major markets tracked by Case-Shiller, 12 markets saw home prices fall by less than 5% in the second half of 2022. That includes markets like Chicago (-0.9%) and New York (-2.2%). Meanwhile, eight markets saw local home prices fall by over 5% in the second half of 2022. That includes sharp drops in markets like San Francisco (-12.3%), Seattle (-11.4%), and Phoenix (-7.15%).

While this mild correction might not be a bursting national Pandemic Housing Bubble, one could argue that markets like San Francisco are indeed bursting Pandemic Housing Bubbles.

Let’s be clear: The concept of a Pandemic Housing Bubble isn’t anything like the 2000s housing bubble—which saw predatory mortgage lending fuel rampant speculation and overbuilding.