Having hit a 7-year high in September, the number of homes actively listed for sale in the San Francisco ticked up another 6.6 percent over the past month to 950 and overall inventory levels are now running 30 percent higher on a year-over-year basis and 41 percent above their mark at the same time in 2015 (680), the year which remains an inflection point for the current cycle.
At a more granular level, the number of single-family homes currently listed for sale in the city (360) is now running 43 percent higher versus the same time last year while the number of listed condominiums (600) is up 24 percent, not including the vast majority of new construction condos for sale across the city, the inventory of which has been hovering around 500.
At the same time, 22 percent of the active listings in San Francisco have undergone at least one price reduction, which is 4 percentage points higher on a year-over-year basis, while 33 percent of the homes on the market are currently listed for under a million dollars versus 30 percent at the same time last year.
Inventory levels have likely peaked for the year and should start to decline though the end of December while the percentage of listings with a price cut should continue to increase. Keep in mind that recorded home sales in San Francisco were 5.9 percent lower on a year-over-year basis in August having dropped to a seven-year seasonal low in July.