The long-term effects of this, especially vis-a-vis its impact on the rental market in San Francisco remains to be seen.
Perhaps nothing is more indicative of a cooling market than increasing numbers of listings expiring and being withdrawn from the market without selling.
Q1 2016 saw big jumps in expired/withdrawn condo listings over the first quarters of the previous 3 years. Many such listings end up coming back on the market at lower prices.
It’s chilling: for condos under $1.5 million, the number of withdrawn or expired listings soared 94%, and for condos above $1.5 million 128%!
When these unsold units come back on the market, sellers nurturing any hopes of selling their condos will likely have to swallow a bitter pill: reduced asking prices. And this marks the point when the phenomenal, incredible, breath-taking San Francisco condo boom turns into a bust.
Additionally, the startup boom is floundering. VCs have become skittish. Startups are cutting expenses to stay alive a little longer. IPOs had the worst quarter since 2009, and this has caught the ultimate smart money by surprise.