Despite a pronounced slowdown in the relative number of condos and single-family homes newly listed for sale over the past two weeks, driven by sellers either being unable or unwilling to accept an ongoing drop in values, the net number of homes on the market in San Francisco has ticked up 10 percent and is currently 8 percent higher than at the same time last year, driven by an even greater slowdown in the pace of sales.
As such, inventory levels are now 35 percent higher than prior to the pandemic and nearly 50 percent higher than average over the past decade, with 30 percent more single-family homes on the market than at the same time last year.
As we outlined earlier this year, expect inventory levels to climb over the next couple 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 mortgage rates, none of which should catch any plugged-in readers by surprise.