Driven by a drop in new listing activity versus a spike in sales, the net number of single-family homes and condos on the market in San Francisco ticked down 2 percent over the past week but remains 1 percent higher than at the same time last year and nearly 30 percent higher than average for mid-June, despite ongoing misreports of “supply constraints” versus a drop in demand.
At the same time, the average asking price per square foot of the homes on the market in San Francisco dropped nearly 3 percent over the past week and is now 6 percent lower, not higher, than at the same time last year, helping to close a (mis)expectation gap that was on the rise, none of which should catch any plugged-in readers by surprise.
Inventory levels should tick (back) up over the next month or two if historical patterns hold, putting additional downward pressure on prices, before taking a breather in August. We’ll keep you posted, plugged-in and ahead of the curve.