Having hit a relative 7-year high last month, the number of homes on the market in San Francisco (730) has since climbed another 15 percent and listed inventory levels are now running 17 percent higher than at the same time last.
At a more granular level, the number of condos listed for sale in the city (480) is now running 17 percent higher on a year-over-year basis while the number of single-family homes (250) is running 18 percent higher, year-over-year.
For the first time since the first quarter of 2019, the number of homes on the market with a price tag of a million dollars or less (185) is greater than at the same time last year on an absolute basis.
And in fact, we’re expecting inventory levels in San Francisco to hit a 9-year seasonal high next week and to continue to climb through mid-June (and now possibly July).
Does the price of stocks have any meaningful effect the price of Real Estate in SF? I feel DOW 22,000 is a possibility in the coming weeks.
The dip in the market will likely decrease the Demand function of the curve. Then again, mortgage rates are at historic lows. On the other hand, I wouldn’t be surprised if sellers don’t want strangers coming in and touching their stuff during open houses w/this COVID-19 outbreak, either. Lots of factors in play here…
I think the only factor that matters at end of day is how many buyers can afford SF price points. My off the cuff speculation is inventories will keep rising until you have a correction in the market which would probably be driven by foreclosures if anything else.
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Low mortgage rates only go so far when wages did not even come close to keeping up with the rise of real estate values over the last decade. At some point the number of buyers who can afford is simply not enough. Just to add some salt in the wound is the sticker shock of property tax bill on the value being reassessed on those high prices.
UPDATE: As expected, Number of Homes on the Market in SF Hits a 9-Year High.