San Francisco sees highest number of new home listings in over a decade

Around 400 new San Francisco listings came on the market in the last week, according to SocketSite, the highest number of new listings in the city in one week in over 15 years. Added to the stock of previously unsold listings, that makes close to 1,100 homes currently on the market, the highest since the end of 2020.

Part of this week’s skyrocketing inventory can be attributed to normal seasonal changes, as many agents hold their late-summer listings until after Labor Day to make sure buyers are back from their travels. So there’s always a rush to put homes on the market as soon as possible after the holiday weekend, since another seasonal slowdown typically begins in November.

But the pace of sales in the city appears to be slowing outside of these seasonal trends, though there are still more than 80 percent more homes in contract across San Francisco than there were at this time of the year in 2019, SocketSite reported.

“The pandemic-era pace of sales has slowed and sales in the fourth quarter will be down on a year-over-year basis if the current pace holds,” according to the real estate site’s analysis.

SocketSite’s data takes into account all listings coming to market, including condos, which is where entry-level buyers are more likely to be on stronger footing. Single-family homes are still selling at a fast and furious pace as buyers continue to prioritize more space and private outdoor amenities.

Condos have rebounded more recently, but sale prices are still flat compared with pre-pandemic prices, while median home prices in the city are up around 20 percent, according to Compass data. One reason that condo rates have stayed flat is that so many came online in the last few years and failed to sell at the pace developers planned due to the pandemic. While thousands of new condos can come on the market when a big development opens, only a handful of new single-family homes are built each year, increasing the premiums buyers are willing to pay.

“New construction certainly helped keep condo prices from appreciating in any significant way over recent years,” said Compass Chief Market Analyst Patrick Carlisle. “More supply will always moderate price increases and help affordability.”