As expected, the number of homes on the market in San Francisco (610) has jumped 20 percent since the Super Bowl and inventory levels are now back to within 3 percent of their mark at the same time last year and a 7-year high.
At a more granular level, the number of condos listed for sale in the city (420) is now running 1 percent higher on a year-over-year basis while the number of single-family (190) remains 10 percent lower, but that’s versus 30 percent lower prior to the Super Bowl.
And the percentage of listings which have undergone at least one official price reduction (which doesn’t include any of the homes which were withdrawn from the market at the end of last year and have recently been relisted with a reduced asking price and a reset ‘days on the market’ count) has ticked up to 15 percent, which is one (1) percentage point higher than at the same time last year, while the percentage of homes on the market with a price tag of a million dollars or less is now holding at around 25 percent (which is down 3 percentage points on year-over-year basis).
Expect inventory levels to continue to climb through mid-June in San Francisco (and that we’ll keep you posted and plugged-in).
We are now at a point where buying is only going to make sense if the price keeps going up….
Happily renting for the time being… Waiting for another 10%-20% drop before I would get serious about buying….
Prices are flat and as tech companies leave the City (Jack Dorsey recently said Twitter’s long range future is not in San Francisco for the obvious reasons) it is not out of the cards that a somewhat significant drop in home prices could occur. Prop E will effectively bring to a halt office development in SF and so upward pressure on home prices and rents should start dropping in the next few years.
In case it’s not obvious to folks reading the above comment: he’s talking about the second derivative here. Prop E isn’t going to make rents affordable in the short term, even in the commercial sphere.