Condo prices keep on upward trajectory
With lack of inventory at historic lows, San Francisco condominium prices continue to press northward. That’s according to the San Francisco Business Times, which reports that condo prices went up 19 percent in April as compared to last year, hitting an average of $1,115 per square foot for new construction. The report was based on research by condo marketing and research firm The Mark Co.
Meanwhile, inventory was down 45 percent over last year, with just 136 units available. The Business Times quoted Mark Co. senior director of research Erin Kennelly as saying the results were “by far its single month gain this year.” Kennelly added that they were “building on an already strong market in San Francisco caused by low inventory and extremely strong demand.”
However, Kennelly added, a large bulk of new condos set to come online this year could ease the inventory crunch. Those include the Linea project at 1998 Market Street (115 units) as well as Vida at 2558 Mission Street (114 units). Other developments set to come online later this year include Amero (27 units), Arden (267 units) and Lumina (665 units).
But this year, less than 1,500 condos will come online. In contrast, more than 5,000 new apartments will be finished and ready to be leased. This traces back to a few years ago, when it was easier to finance apartments than condos.
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