Photo: Joe Wolf/Flickr
The average price for a new construction condo in San Francisco increased by only 3 percent from March to April and 2 percent year-over-year, according to The Mark Company’s most recent Condominium Price Index.
The index is based on recent sales data, and tracks the value of new construction condos without the volatility of inventory changes. In the report published last week, the San Francisco-based sales and marketing company said that the moderate price increases indicate that the market is “steadily stabilizing.”
“With the recent addition of The Harrison with 298 units, there are now approximately 889 new construction condominiums available for sale in San Francisco, which is a 40 percent increase from the previous month, but well below the high of approximately 3,000 units researched in 2007,” said Erin Kennelly, senior director of research at The Mark Company, in a press release.
“Inventory is anticipated to increase during the remainder of 2016, with several new developments slated to commence sales later this year,” she added.
Resale condo prices are also only inching upwards, with the price per square foot increasing by 3 percent in April to $1,072 after an increase of 2 percent in March. This came after a surge of 15 percent in February. Resale condo inventory remains low at 394 listings. This represents only two months of inventory in the current market, with six months considered the equilibrium between a buyer’s and a seller’s market.
News of slowing price growth likely comes as no surprise as Bay Area tech layoffs have more than doubled in the first four months of 2016 compared to the same period last year, The Mercury News recently reported.