There were 12 percent fewer homes on the market in San Francisco at the end of 2023 than there were at the end of 2022, driven by a pronounced drop in new listing activity versus a jump in sales, with pending sales down over 10 percent on a year-over-year basis in the fourth quarter of 2023 and 50 percent lower than two years ago.

At the same time, while down on a year-over-year basis, listed inventory levels at the end of 2023 were 75 percent higher than prior to the pandemic in San Francisco, three times higher than at the end of 2015, and 40 percent higher than average at the end of a year, with the average asking price per square foot of the homes on the market down over 10 percent from peak.

Expect inventory levels to start ticking up over the next few weeks and then jump in February/March, with properties that failed to sell in 2023 re-listed as “new” and a bolus of sellers that were waiting for mortgage rates to drop or simply couldn’t afford to sell last year, but want or need to make a move, are flushed out. We’ll keep you posted and plugged-in.

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