Number of Homes for Sale in SF Has Likely Peaked, at Least for Now

by SocketSite

While 17 percent higher than at the beginning of the month, the number of homes on the market in San Francisco is now holding at around 700, which is 37 percent higher than in June of 2015 but 3 percent lower than at the same time last year, with the year-over-year drop being driven by a slowdown in new listing activity versus an increase in sales, the pace of which is actually down.

At the same time, the percentage of active listings in San Francisco which have undergone at least one price reduction has ticked up to 17 percent (which is even with the same time last year) while the percentage of homes on the market with a price tag of a million dollars or less has ticked up to 29 percent (which is still 2 percent points lower than at the same time last year but closing).

Expect inventory levels to start ticking down through August before jumping in September and then peaking again mid-fall.