With the number of homes newly listed for sale over the past week having outpaced the number of new contracts written, the inventory of homes on the market in San Francisco has ticked up one (1) percent to 1,040, which is 8 percent higher than at the same time last year and a new 8-year high.
While the year-over-year gain in inventory levels is still being driven by listings for condos, which are currently up 13 percent on a year-over-year basis, not including the vast majority of new construction condos for sale across the city, the number of single-family homes on the market ticked up 6 percent over the past week and now totals 360, which is effectively even with the same time last year.
At the same time, the percentage of active listings which have undergone at least one price reduction increased 3 percentage points to 23 percent, which is even with the same time last year despite a growing number of unsold properties having been relisted anew with a reduced asking price, but no official reductions according to MLS-based stats, while the percentage of homes on the market with a price tag of a million dollars or less has dropped to 26 percent, which is nearly 8 percentage points lower than at the same time last year, increasing the share of more expensive listings and resultant sales.
Once again, if typical patterns hold, inventory levels have likely peaked for the year. But with year-to-date home sales in San Francisco running at an 8-year low, inventory levels could tick up another point or two before dropping through December.