Driven by a slowdown in listing activity, the net number of homes on the market in San Francisco dropped 8 percent over the past week but remains 35 percent higher than at the same time last year, with 70 percent more single-family homes on the market and 80 percent more inventory than at the end of 2019.

At the same time, pending sales are down 45 percent on a year-over-year basis and the list price per square foot of the homes which are in contract, which is a leading indicator, has dropped even farther below $900 per square foot and is now down nearly 15 percent over the past six months to its lowest level in five years.

As we’ve outlined over the past few months, expect a further drop in pricing through the end of the year along with a rash of unsold properties being withdrawn from the MLS before returning anew in the spring, none of which should catch any plugged-in readers, other than the most obstinate, by surprise.

Leave a Reply

Your email address will not be published. Required fields are marked *