With the expectation gap between the list price per square foot of the homes on the market in San Francisco and the price per square foot of the homes for which an offer has actually been made having widened, perhaps driven by (mis)reports of a “surging market” making the rounds, price reductions are now on the rise as well, with a third of the homes on the market having been reduced at least once, which is the highest percentage since the end of last year, up 7 percentage points over the past three months, and twice the percentage of reduced listings than there were in June of 2019, prior to the pandemic-era squeeze.

3 thoughts on “Price Reductions on the Rise in San Francisco”
  1. What is happening with the average sales price, why not do that graph…… it would actually be relevant to what the market is actually doing.

  2. This site appears to prefer to publish —as it did last monththe average asking price per square foot of the homes that are in contract, which at that point had “just slipped back under $900 per square foot”. Recently:

    20 Jun 2023: “poised to drop back under $900 per ft.²”
    13 Sep 2023: “has just slipped back under $900 per ft.² and is down over 10 percent from the second quarter of last year”
    26 Feb 2024: “which is currently holding at around $900 per ft.²”
    4 Mar 2024: “still hovering around $900 per ft.² in San Francisco”
    22 May 2024: “has inched back down to around $900 per ft.²”

    Obviously I haven’t seen the data set over a reasonable time period; I’m guessing that this metric is kinda “noisy” or the variance is low so a chart wouldn’t be that interesting on any short time frame. And in any event it isn’t quite the metric you were asking for.

    The California Association of Realtors publishes reports on Median Sold Price of Existing Single-Family Homes and Median Sold Price of Existing Condos and Townhomes, in which you can scroll down in the data tables to find “San Francisco” in the column headed “Region/County”, but I assume those two reports leave out new construction homes. And, of course, the median is not the same thing as the average.

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