I think the market is finally reacting to the fact that 92103 homes are trading at prices at or very near par with 92116 and 92104 homes in similar condition. The market seems a little hotter this January than last with 3 more detached pendings today, for example.

According to sdlookup, 92103 now has 68 homes for sale. Still many of the homes are still way overpriced so it is hard to imagine inventory coming down much more just in time for spring selling season.

Further, it remains to be seen how many sellers are going to “try their luck” again this year after seeing a string of very weak closing prices being posted.