While the net number of condos and single-family homes listed for sale in San Francisco (1,160) ticked down 2 percent over the past week, as is typical for the first week of August, there are still over 30 percent more homes on the market than there were at the same time last year, over twice as many as there were prior to the pandemic, and nearly three times as many homes on the market as there were at the same time of the year in 2015.

At the same time, the percentage of the homes on the market in San Francisco which have been reduced has ticked up to 32 percent, which is 10 percentage points higher than at the same time last year and versus 19 percent in early August of2019, and the pace of sales is down nearly 40 percent, year-over-year.

And with 39 percent of the homes on the market in San Francisco currently listed for under a million dollars, which is 3 percentage points higher than at the same time last year, there are now over 40 percent more sub-million dollar homes on the market than there were at the same time last year, including 16 percent more single-family homes.

Comments from Plugged-In Readers

  1. Posted by Amewsed

    I am seeing several more homes that were on the market now becoming rentals. Likely because the sellers weren’t getting the offers they like so the next best option is to rent property out for 3 to 5 yrs. and then re-evaluate.

    • Posted by Backtotheburbs

      Ah, but as # rentals increases won’t that be downward pressure on rents as well?

      • Posted by Amewsed

        Not really. They are pricey rentals given the quality of the finishes (sale grade vs. rental grade.) Not seeing a lot yet but the downward cycle just started i.e. interest rates, inflation, tech layoffs, probably biotech layoffs, etc.

  2. Posted by Fred Mack

    Long may the devaluations continue.

  3. Posted by inthemarket

    you should look up the story of 50 Oak. They apparently decided not to close on the units that are already sold, thinking about converting the building from condos to a rentals.

    • Posted by house of cards

      Hey, this movie sounds familiar. 🍿

    • Posted by Brahma (incensed renter)

      Perhaps inthemarket means 55 Oak St.? If so, I don’t think that story has anything widely applicable to say about the local market in condominiums.

      From New S.F. condo building is sitting empty. Neighbors and home buyers want to know why, fifth ‘graph:

      Increasing evidence suggests the developer…Z&L Properties, doesn’t intend to close on any of the condos. Z&L owes about $2 million in back taxes on the property, in addition to mechanic’s liens filed by subcontractors who worked on the development…sources familiar with the situation say rather than continue with condo sales the developer has retained the brokerage Kidder Matthews to sell the property in bulk to a rental housing investor…in addition, the company executive Zhang Li was caught up in the federal corruption case against former Public Works Director Mohammed Nuru, who was indicted in January 2020 on public corruption charges. The indictment states that Nuru had met Li in China on multiple occasions and that the Chinese developer had showered him with gifts and put him up for free at five-star hotels.

      Emphasis mine.

      This is more of a story about the Idiosyncratic risk involved in buying from a developer with a known track record of shady dealings and cutting corners, which unfortunately is more commonly occurring in S.F. than other cities because so many of them arrive here from elsewhere with dollar signs in their eyes, and don’t care what rules they have to violate while they try to realize their wild dreams of avarice.

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