Despite a 25 percent drop in new listing activity, the net number of single-family homes and condos on the market in San Francisco only ticked down 1 percent over the past week, with the pace of actual sales and absorption of existing homes listed for sale in San Francisco down nearly 30 percent, year-over-year.

As such, while listed inventory levels in San Francisco are down 15 percent on a year-over-year basis, driven by the impact of a jump in the cost of debt, back to historical norms, along with an associated drop in values that existing home owners are either unable or unwilling to accept in order to move up, over or out, inventory levels are still 30 percent higher than average for this time of the year, 55 percent higher than prior to the pandemic and over twice as high as in 2015, despite misreports of “record low inventory levels,” both locally and further afar.

And despite inventory levels being down on a year-over-year basis, which one might be led to infer would be driving prices up, the average asking price per square foot of the homes which are on the market in San Francisco has dropped back under $950 percent square foot, which is 9 percent lower than at the same time last year, with the average price per square foot of the homes which are actually in contract a few points lower and having nearly dropped back under $900 per foot. We’ll keep you posted and actually plugged-in.

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