While 2015 proved to be record year for high-end home sales in New York and San Francisco, the good fortune appears to have stalled and the growth rate has stalled. CoreLogic staffer Sam Khater reports on the state of both markets with New York declining the last four to five months of 32015 and San Francisco still growing albeit at a slower rate.
Khater looks explains how inventory (particularly, change in inventory) is the most forward-looking indicator for residential real-estate and how it forewarned of a slowdown:
In New York City inventory began to rise at a double digit pace in June 2014, while in San Francisco it crossed that threshold in January of 2015. By December 2015, San Francisco’s high-end market inventory was up 25 percent, which is a clear indicator that the market is slowing down and pricing is coming under pressure.