As anticipated and similar to a year ago, new listings for the past two weeks have dropped off dramatically (80 vs 130 during the previous two week period). For the same period last year there were 70 new listings.
The number of new listings that went into contract in the last two weeks is also up significantly with 18% of single family home new listings and 32% of condo new listings going into contract compared with 9% and 16% two weeks ago as buyers (and their agents) try to get sales nailed down before the holidays kick in. We saw similar numbers a year ago.
Continuing the trend we've seen most of the year, the number of price reductions in the last two weeks is considerably higher than a year ago: 11 single family homes and 20 condos saw price reductions in the last two weeks compared to only 3 and 5 respectively during the same period last year.
The graph above shows quite well that price reductions this year far exceeded those of last year. For single family homes there have been 485 price reductions this year compared to just 314 in 2015 -- a 54% increase. For condos the numbers are 928 this year vs 437 last year -- a 112% increase.
The number of new listings this year is just about the same as 2015 -- 7,063 so far in 2016 vs 6,717 in 2015.
In our other reports where we report on the number of sales of various configurations of single family homes and condos in San Francisco, the result of this price reduction pressure can be seen especially in condos where two of the three condo configurations we track are showing lower average sales prices than the average 2015 sales price. For example, the average sales price of a 2-bedroom/1-bath condo in 2015 was $1,024,000. So far in 2016 the average price has been $994,000. That's not a huge drop but it is significant since it's the first drop in average sales price after four years of consistent increases.