While the number of homes actively listed for sale in San Francisco peaked at a 7-year high of around 960 this past October and has since ticked down to 775 with typical seasonality in play, there are now 53 percent more homes on the market than there were at the same time last year and inventory remains at a 7-year seasonal high.

At a more granular level, the number of single-family homes currently listed for sale in the city (260) is now running 47 percent higher on a year-over-year basis while the number of listed condominiums (515) is up 56 percent, not including the vast majority of new construction condos still for sale across the city.

The number of homes on the market priced at under a million dollars in San Francisco is now running 53 percent higher on a year-over-year basis as well. And 26 percent of all the homes currently listed for sale in the city have undergone at least one price reduction, which is even with the same time last year.

Expect inventory levels to continue to decline though the end of December and the percentage of listings with a price cut, which topped out at 27 percent in San Francisco last year and 32 percent in 2016, to continue to tick up.