While the number of homes listed for sale in San Francisco hit a seasonal peak last month, inventory levels have ticked up 16 percent over the past two weeks and are now running 4 percent higher than at the same time last year.

At the same time, the percentage of active listings in San Francisco which have undergone at least one price reduction has been on the rise.

And with the number of homes in contract over the past two weeks running an average of over 15 percent lower than at the same time last year, the pace of home sales in San Francisco has dropped anew, which shouldn’t catch any plugged-in readers by surprise.

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Comments from “Plugged-In” Readers

  1. Posted by JJBiddyBean

    Seems like 1-bedrooms just about all go pending within a couple of weeks. What slowdown?

    • Posted by SocketSite

      Sales of one-bedrooms are actually down 20 percent over the past 12 months as compared to the 12 months before. That being said, any thoughts as to why the demand for one-bedrooms (which are relatively less expensive and tend to represent entry-level purchases) might remain relatively strong?

      • Posted by JJBiddyBean

        Well although you censored my realtor links proving the case, sure. 900k isn’t a lot of money anymore. This market is as hot as ever. Good luck getting a condo here.

        • Posted by SocketSite

          Unfortunately, simply linking to a couple of condos that sold didn’t actually make your case. And in terms of all “1-bedroom condos 500k-1.2 million” going “pending in a week,” the average time on the market for said condos listed for sale in San Francisco, which haven’t yet gone into contract and of which there are around 100, is currently over 30 days.

  2. Posted by Sri

    Terrible news if you are a buyer – inventory up but homes in contract down. Usually a sign of “bottom quartile inventory” coming to market – and thus supply is up – which leads to the buyers coming out. And when they find that inventory is high but not quality, they all bid on the same small subset of homes. Combine that with nearly all time low mortgage rates and what happens? Many quality homes selling way above asking again.

    Recent examples:
    2106 Scott Unit A (listed $1.895, pending 7 days later, sold $2.12)
    2009 Divisadero Apt 3C (listed $1.295, pending 7 days later, sold $1.66)
    And the MOTHERLOAD – 3363 Washington, which is not even in a condition to move into, listed at $4.995 and pending in 13 days — sold for $6.820 !!!!

    Ugh, I thought the “quality homes selling WAY above asking” days are over but looks like they are back. Sorry buyers, (the good homes in) SF — red hot again.

    • Posted by SocketSite

      Keep in mind that the share of more expensive homes listed for sale in San Francisco is up, not down. And the share of homes selling for “over asking” in San Francisco, which is actually a function of pricing, is down.

    • Posted by Anonoly

      Untrue; this is the best market for buyers I have seen since 2015. Houses are lingering on the market for much longer, more price decreases, not nearly as many competing offers, less all cash offers etc. I feel the significant pullback from foreign buyers is causing this. Add a little slowdown in the economy and things will only get better for buyers.

      • Posted by JJBiddyBean

        go to realtor website and search 1-bedroom condos 500k-1.2 million. All go pending in a week. Those on the site not yet pending will be within a week. Any new ones that pop up in the timeframe will also go pending within a week.

        Literally a week’s worth of supply for condos asking nearly a millino dollars. and the FED is going to lower rates. crazy

        • Posted by SocketSite

          Factually speaking, that’s incorrect. In addition, the number of days on the market for listed condos that sold in San Francisco was over 30 last month versus under 30 at the same time last year.

      • Posted by thinker

        “feel the significant pullback from foreign buyers is causing this. Add a little slowdown in the economy and things will only get better for buyers.”

        Domestic population growth was already negative. The only thing keeping the total growth positive was foreign immigration. This foreign pullback is the other shoe dropping.

    • Posted by tipster

      Over asking? What a silly metric that 3 homes in 1000 were over asking, when the asking price is set by the seller, who is under no obligation to accept that price. I suppose that one could argue that those three sellers were so desperate to sell quickly that they purposefully underpriced their homes, except that would be just as meaningless.

      The fact is that the number of days on the market is up 62% from last year, in spite of the fact that interest rates are 20% lower. That’s not a good market, no matter how you try to spin three homes out of 1000.

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