Following a trend which shouldn’t catch any plugged-in readers by surprise, the number of homes on the market in San Francisco (630) has jumped 25 percent since the Super Bowl. As such, inventory levels in the city are now running 3 percent higher than at the same time last year and just hit a new 7-year seasonal high.
At a more granular level, the number of condos listed for sale in the city (430) is now running 4 percent higher on a year-over-year basis while the number of single-family homes (200) is roughly even (up a percent), resulting in the first year-over-year increase in overall inventory levels since mid-November of last year.
At the same time, the percentage of listings which have undergone at least one official price reduction (which doesn’t include any of the homes which were withdrawn from the market at the end of last year and have recently been relisted with a reduced asking price and a reset ‘days on the market’ count) has slipped one (a) percentage point to 15 percent, which is two (2) percentage points lower than at the same time last year, while the percentage of homes on the market with a price tag of a million dollars or less has dropped to 23 percent (which is 6 percentage points lower than at the same time last year).
Expect inventory levels in San Francisco to continue to climb through mid-June with the relative pace of sales having slowed.