Rendering via jaypaul.com
San Francisco new condominium prices were down 2 percent in May over April, according to a new report by The Mark Company.
The price dip is notable considering that new condominium inventory continued to decrease. In fact, inventory decreased 14 percent in May with only 810 units currently available for sale in the city.
Although prices decreased, it is too early to tell if this is a sign of an enduring trend reversal or a slowdown in price growth. Prices are still up 12 percent over May 2014.
“Approximately 148 new condominiums were placed into contract in May, leaving approximately 810 new condominium units available for sale in San Francisco, compared with 3,000 units that were available at the peak of 2007,” said Erin Kennelly, Senior Director of Research at The Mark Company.
“Strong demand by residents seeking housing in urban environments, and a positive economic climate continue to tighten available inventory.”
The Mark Company’s Condominium Pricing Index is a methodology for representing 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 without the volatility of inventory changes.
The Mark Company is one of the nation’s largest urban residential marketing and sales firms. It provides core consulting services including analytics, design, marketing and sales for urban high-rises and suburban attached properties throughout the Western United States. Notable past projects include 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 (pictured above) in San Francisco and SL70 in Los Angeles.