Following a trend that shouldn’t catch any plugged-in readers by surprise, the net number of homes on the market in San Francisco, which peaked exactly three weeks ago, ticked down five (5) percent over the past week to 1,150, driven by a slowdown in listing activity versus a jump in sales.
As such, while listed inventory levels in San Francisco are now down 36 percent on a year-over-year basis, from a two-decade high last year, there are still 25 percent more homes on the market than there were at this time of time of the year in 2019, prior to the pandemic, and 85 percent more homes on the market than there were in 2015.
As we outlined three weeks ago, “expect inventory levels to tick down over the next couple of weeks and then drop through the end of the year, with unsold inventory either withdrawn from the market and then re-listed as “new” in the spring or reduced,” with a quarter of the active listings in San Francisco having already been reduced at least once, which is up from 18 percent of the active listings in mid-September, and the average list price per square foot, which slipped back under $1,000 per square foot last week, down 2 percent, year-over-year.