Driven by a pronounced slowdown in the pace of sales, the net number of homes on the market in San Francisco (i.e., inventory) has jumped by 25 percent over the past two weeks to 1,410, which shouldn’t catch any plugged-in readers by surprise.
In fact, there are now 20 percent more homes on the market in San Francisco than there were at the same time last year, 45 percent more homes on the market than prior to the pandemic, and over twice as many homes on the market than there were in September of 2015. And save for when the market was frozen in 2020, listed inventory is effectively at an 11-year high in San Francisco, with 28 percent of the homes on the market having been reduced at least once, which is up from under 20 percent at the same time last year.
Expect inventory levels to continue to climb over the next month to an annual peak in October and then trailing off through the end of the year, with an increase in reductions and properties being withdrawn from the MLS before returning in the spring. We’ll keep you posted and plugged-in.