Increase in inventory fails to depress new-condo prices
Here’s the good news: 401 new condo units came online in San Francisco in June. That’s an increase of 63 year-over-year, according to the Mark Company’s monthly trend sheet. So what’s the bad (depending on how you look at it) news? It doesn’t seem to be making much of a difference in terms of pricing.
So how is pricing looking? It’s hit an average of $1,144 per square foot. That’s up 13 percent year over year and up 2 percent from last month. According to Curbed SF, new developments such as 8 Octavia are leading the way. That particular project set new Hayes Valley condo pricing records earlier this month with its $1,384 per-square-foot price for a two-bedroom, two-bath unit.
Other developments which have come on the market recently include Millwheel North, Fifteen Fifteen, Arden and Vida – and all are seeing strong sales. The Mark Company reports that Arden is more than half sold already; 150-plus units are gone, with 117 still available. In addition, Millwheel North and Fifteen Fifteen are also reported to be about half sold, and Vida has had at least 40 sales of its total 114 units.
Additionally, Amero, Summit 800 and the San Francisco Shipyard’s Phase I are about to start selling. Other actively selling properties with 20 or more units include 1645 Pacific, Linea, Mint Collection, and Onyx.
However, it may take more than just these developments to give inventory a jump start as the lack of properties on the market has dogged the city for some time now. This is a promising start, but it’s going to take more than this to get us to the point where we have a reasonable inventory pipeline.
Dreaming of San Francisco? Cece Blase offers local advice to San Francisco buyers, sellers and owners– and feeds the dreams of those who wish they could live in Tony Bennett’s ‘City by the Bay.’ Call 415-577-0809 or email firstname.lastname@example.org. www.ceceblase.com