Inventory Ticks Up in S.F., Pending Sales and Prices DownFebruary 21, 2023
The net number of condos and single-family homes listed for sale in San Francisco, which is set to climb, ticked up another 7 percent over the past week despite a year-over-year drop in new listing activity, driven by a pronounced decline in sales activity.
In fact, the net number of homes in contract to be sold across San Francisco is currently 40 percent lower than at the same time last year, which is right in-line with purchase activity nationally, and remains at a six-year low on a seasonally adjusted basis despite having “jumped” a few weeks ago, a trend that was misreported elsewhere. At the same time, the average price of the homes which are in contract has dropped back under $910 per square foot, which is down 9 percent on a year-over-year basis and 10 percent lower than last May.
Once again, expect inventory levels to jump over the next few weeks and months, with properties that failed to sell at the end of last year re-listed anew and new listing activity climbing as well, the absorption of which should provide some key insight into the lasting impact of higher rates. We’ll keep you posted and plugged-in.
Comments from Plugged-In Readers
Europe wide RE reckoning
Of course Europe is a bit removed from SF real estate – but another sign of liquidity evaporating in RE markets globally with concentration in the West where valuations were supported by Central Bank injected liquidity rather than economic productivity and organic demand.
I actually think this could be an opportunity for SF and Bay Area IF they can absorb some of that capital flight into quality assets. But then again I am not holding my breath.
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