Price Reductions On The RiseOctober 13, 2015
Both the number and percentage (13.3) of homes listed for sale in San Francisco that have had at least one price cut is on the rise, as is typical for this time of the year, with 12 percent more homes on the market at the moment than there were at the same time last year, up from 9 percent higher last week and the highest year-over-year increase we’ve seen in four years.
While closings have slipped, the number of single-family homes listed for sale in San Francisco has ticked up to from 254 to 267 over the past week. And while that’s 3 percent lower than at the same time last year (versus 7 percent lower last week), the number of condos listed for sale in the city (410) remains 23 percent higher, year-over-year.
At the same time, the percentage of homes on the market which are listed for less than a million dollars has slipped to 42 percent, down from over 50 percent two months ago, which should help boost the “median sale price” assuming an even distribution of closings.
And if typical seasonality holds true, the absolute number of homes on the market with at least one price cut should continue to rise through the end of November, at which point unsold inventory will start to be withdrawn from the market driving the overall percentage of homes on the market with a reduced price higher through the end of the year.
Comments from Plugged-In Readers
Yup. I’ve noticed this anecdotally as well.
Instead of an initial price set intentionally low to solicit offers over asking, I’m seeing the initial asking price set at the broker’s dream price and thus the price reductions we are seeing. At the end of the day I think the selling price is the same, but the buyer feels better about waiting for the reduction.
The market has crested.
See the comments on the sub-million dollar story. A similar thread in many ways.
Comments are closed.