Condo inventory down, prices up
Looks like the San Francisco condo market is getting a little more challenging for buyers. According to urban residential marketing and sales firm The Mark Company, condo prices in the city jumped 18 percent year-over-year in December 2013.
What’s more, new construction inventory was down a whopping 78 percent year over year. You don’t have to do a lot of math to realize how these two statistics are related. Mark Company senior director of research Erin Kennelly told the San Francisco Chronicle that with such low inventory, price inventory is expected to continue this year.
The firm’s Condominium Pricing Index is part of its monthly Trend Sheet and takes as its base the per-square-foot price of of a newly built tenth-floor, 1,000-square-foot condo. In addition, its Penthouse Pricing Index takes as its base a new thirtieth-floor, 2,000-square-foot condo. This was found to be $1,776 per square foot. For resales, the price per square foot was $868, an increase of 26 percent year over year.
Kennelly also noted to the Chron that “while other West Coast markets such as Seattle and Los Angeles have also experienced strong condominium price appreciation over the past year, San Francisco is unique in that prices have been rising while significant numbers of new condominiums have been absorbed.”
What are your thoughts on the matter?
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