New Condominium Sales Were Exceptionally Strong With 126 Units Placed into Contract In February, According To The Mark Company Trend Sheet
San Francisco – March 15, 2016 – San Francisco condominium prices increased 4 percent in February and are now 2 percent higher than the same month last year, according to the Condominium Pricing Index released today by The Mark Company, a leading urban residential marketing and sales firm.
The San Francisco Condominium Pricing Index for San Francisco increased to $1,243 per square foot in February, compared to $1,194 per square foot in January, a positive indicator following several minor consecutive monthly declines.
“New condominium sales were exceptionally strong in February, with approximately 126 units placed into contract,” said Erin Kennelly, senior director of research, The Mark Company. “The demand for new condominiums is accelerating, and despite the addition of four new developments to the currently selling inventory, the number of available new condominiums only increased by 2 percent. We anticipate that sales figures for March will continue to reflect improving market conditions.”
There are now approximately 666 new condominiums available for sale in San Francisco, and that number is expected to increase over the next few months as several new developments are planning to commence sales. However new construction inventory still remains historically low, declining 6 percent compared to the same month one year ago.
The resale market jumped 15 percent in February to $1,020 per square foot, compared to $889 per square foot in January. Resale prices are now also 15 percent higher than 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.
Resale inventory remains extremely low, and there are now only 282 active condominium listings in San Francisco, representing 1.9 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 155 pending listings for condominiums, representing 30 percent, slightly higher than 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 February Downtown Los Angeles Trend Sheet, the February Downtown Seattle Trend Sheet, and the February 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.