Strong Demand and Absorption Continue to Drive Pricing According to The Mark Company Trend Sheet
San Francisco – May 18, 2015 – San Francisco new condominium prices rose 2 percent in April 2015 from the previous month, 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 April was $1,282 per square foot, which is 15 percent higher than the same month last year. New construction inventory increased 45 percent from last month, and is 594 percent higher than one year ago.
“There are a total of 944 new condominium units available for sale in San Francisco, the recent increase stemming from the open of Rockwell and The San Francisco Shipyard Blocks 53 and 54.” said Erin Kennelly, senior director of research, The Mark Company. “This compares with 3,000 units that were available at the peak of 2007, indicating that strong market fundamentals and a positive economic climate continue to tighten available inventory.”
Resale condominium prices also increased last month, with the average resale price per square foot now 10 percent higher than last year. The average price per square foot for all resale condominiums sold in San Francisco was $1,022, continuing its upward trend since surpassing the $1,000 per square foot mark for the first time last month.
“As pricing increased, resale inventory remains extremely low, with 244 active resale condominium listings in San Francisco, representing one month of inventory,” added Kennelly. Six months is considered the equilibrium between a buyer’s and a seller’s market.
The Condominium Pricing Index, part of the firm’s monthly Trend Sheet (available at www.themarkcompany.com), represents the price per square foot of a new 10th floor, 1,000-square-foot condominium. It 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 Penthouse Pricing Index, which applies the same methodology to a new 30th floor, 2,000-square-foot condominium, was $2,201 per square foot in April, up 2 percent from the previous month and 15 percent higher year-over-year.
The Mark Company has also released the April Downtown Los Angeles Trend Sheet as well as the April Downtown Seattle Trend Sheet. Both 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, 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 leading residential developers and financial institutions such as Tishman Speyer, iStar Financial and Bosa Development. Since 1997, 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 300 Ivy in San Francisco, Spire in Denver, Evo in Los Angeles, and The Martin in Las Vegas. Current projects include The San Francisco Shipyard, 181 Fremont Residences in San Francisco, and SL70 in Los Angeles. For more information, visit www.themarkcompany.com.