Early Indications Point to Increased Activity in the Market for New Condominiums, According To The Mark Company Trend Sheet
San Francisco – February 18, 2016 – San Francisco condominium prices remained 2 percent higher year-over-year despite a 1 percent decrease in January according to the Condominium Pricing Index released today by The Mark Company, a leading urban residential marketing and sales firm.
The Mark Company Condominium Pricing Index for San Francisco fell to $1,194 per square foot in January, compared to $1,206 per square foot in December 2015, extending the string of minor consecutive monthly declines to five.
“However, early indications are that the market for new condominiums is picking up again,” said Erin Kennelly, senior director of research, The Mark Company. “Contract activity at new developments has been very strong, indicating that recorded closed sales figures for February and March will reflect improving market conditions.”
With the recent addition of 36 new market rate condominiums at 450 Hayes and 81 new market rate condominiums at The District, there are now approximately 655 new condominiums for sale in San Francisco. “That number is expected to rise rapidly over the next few months as several new developments are planning to commence sales,” noted Kennelly.
New construction inventory increased 15 percent last month with 655 new condominiums available for sale in San Francisco, however it still remains historically low, declining 14 percent compared to the same month one year ago.
The average resale price per square foot decreased sharply last month, falling to $889 per square foot, and is 10 percent lower than the previous month, declining 6% compared to the same month one year ago. However, due to the shift in the mix of units sold during the month, the average resale price is not as reliable an indicator of the current market.
Active resale inventory remains extremely low. There are now only 194 active condominium listings in San Francisco, representing only 1.6 months of inventory at the current pace of sales. Six months is considered the equilibrium between a buyer’s and a seller’s market. Additionally, there are 106 pending listings for condominiums, representing a percentage of 27 percent, slightly above the 25 percent that indicates a seller’s market.
The Condominium Pricing Index, part of the firm’s monthly Trend Sheet (available at www.themarkcompany.com), is based on recent sales data, and uses a proprietary quantitative method to measure trends in market demand. It tracks the value of a new construction condominium without the volatility of inventory changes.
The Mark Company has also released the January Downtown Los Angeles Trend Sheet, the January Downtown Seattle Trend Sheet, and the January Downtown San Diego Trend Sheet. All are available for download at www.themarkcompany.com.
About The Mark Company
The Mark Company is one of the nation’s premier urban residential marketing and sales firms. Founded by Alan Mark in 1997, The Mark Company provides a full range of core consulting services including analytics, design, marketing and sales for urban high-rises and suburban attached properties throughout the Western United States. The firm is a trusted partner to global leaders in residential development and finance, providing buyer-driven sales and marketing strategies that produce industry-leading results. The Mark Company has represented more than 10,000 residences and generated over $5 billion in sales for some of the nation’s most notable and successful developments including The Infinity in San Francisco, Evo in Los Angeles and The Martin in Las Vegas. Current projects include 181 Fremont Residences in San Francisco and SL70 in Los Angeles. A subsidiary of Pacific Union International, one of the San Francisco Bay Area’s top-performing resale brokerages, The Mark Company benefits from an enriched leadership team, enhanced technology and added global reach through its affiliation with Christie’s International. For more information, please visit www.themarkcompany.com.