Did you miss that surge of new inventory on the San Francisco market this spring? We all did. Buyers and their agents were hopeful. Inventory levels remained low. I was surprised to see this chart and realize that we've been waiting for the spring inventory to arrive. For the last few years!
California is facing a crisis with water, too. A few years of below normal rainfall, along with increased demand leaves us with a severe shortage of water.
For many of my years as a real estate agent in San Francisco and Marin counties, the market is slower from the holidays until late February. In March, inventory levels pick up and in April and May, we often see inventory levels increase in San Francisco. We see more inventory and more sales until the market slows a bit during the summer and then a surge of homes in mid-September. Not much of a spring increase this past year. Or the year before.
Two things are surprising this year. The first is that inventory is hundreds of units below 2012 levels. And second, we had even fewer homes on the market in April when inventory levels often increase.
Demand remains high. When will inventory levels be higher and in closer balance to demand? Not sure! Until then, this cycle continues: more bidding wars, higher prices, more buyer fatigue.