Despite some misreports to the contrary, the market for single-family homes in San Francisco hasn’t become detached from the market for condos.
While the market for condos tends to be more volatile, with higher highs, lower lows and faster swings between the two, it remains a leading indicator for the market as a whole. Keep in mind that roughly 60 percent more condos trade hands each year in San Francisco than single-family homes.
And with the number of condos on the market having hit a 9-year high in the absolute three months ago, the number of single-family homes on the market in San Francisco has just hit a 9-year high in the absolute as well, with 27 percent of the single-family homes on the market having been reduced at least once (versus 32 percent of the condos and 16 percent of the single-family homes on the market at the same time last year).
And yes, overall inventory levels in San Francisco are nearing a 10-year high in the absolute, which will effectively be a two-decade high as well, while the income a property produces (i.e., rent) has dropped like a rock.