While pending home sales are down nearly 50 percent in San Francisco, the number of homes on the market (i.e., inventory) is currently 35 percent higher than it was at the same time last year and nearly 70 percent higher than prior to the pandemic, including 50 percent more single-family homes.
With the pronounced drop in sales, the percentage of homes on the market in San Francisco which have undergone at least one reduction has just hit 44 percent, which is 16 percentage points, or over 60 percent, higher than at the same time last year, as well as prior to the pandemic having hit, and the highest percentage of reduced listings since the fourth quarter of 2010. And with the jump in reductions, the average asking price per square foot for a home in San Francisco is 8 percent lower than six months ago.
As we’ve maintained, expect a further increase in reductions through the end of the year along with a rash of unsold properties being withdrawn from the MLS before returning anew in the spring. We’ll keep you posted and plugged-in.