Red-hot condo market beyond pre-crash peak
Not only is the city’s condo market enjoying a strong recovery these days, but it’s surpassed its pre-recession peak. That’s according to the San Francisco Chronicle, which asserts that there are a number of factors behind the boom.
“The frothiness is being whipped by a combination of the robust tech economy, low interest rates and a supply of new condos that is at an all-time low,” the article reads. With less than 100 new units on the market – contrasted with an average of ten times that amount between 1999 and 2009 – crucially low inventory is certainly doing its part to push up interest.
In 2013, four major condo projects – Blanc at 1080 Sutter, Linea at 1998 Market, Marlow at 1800 Van Ness and the 300 Ivy Street development – added about 300 units to the pipeline. All except for Linea are sold out; Linea has about a dozen unclaimed units remaining.
The Chron notes that the specter of increasing interest rates this year means extra motivation for both buyers and sellers. Currently the rate is 4.30 percent on a 30-year fixed loan – a figure that the newspaper calculates to mean that a monthly payment on a $500,000 loan will be $2,500, as compared to $3,000 per month when rates were 6.10 percent in December 2007.
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