LOS ANGELES—Condominium prices increased in Downtown Los Angeles, San Francisco and Downtown Seattle in April 2014 over the previous year, according to the a measure released this week by The Mark Company, a leading urban residential marketing and sales firm.
The Mark Company Condominium Pricing Index for April was up 8% year over year in Downtown Los Angeles, 19% higher in San Francisco, and up 16% in Downtown Seattle.
“Low inventory and strong demand are resulting in a steady increase in prices in all three markets,” notes Erin Kennelly, senior director of research, The Mark Company. “San Francisco and Downtown Seattle in particular have experienced strong gains so far this year.”
In Downtown Los Angeles, the Condominium Pricing Index for April was $650 per square foot, which is up 1% from March. New construction inventory was 67% lower than a year ago, and down 19% from the previous month.
The Downtown Seattle Condominium Pricing Index was $729 per square foot, which is unchanged from March. New construction inventory in Downtown Seattle was more than 1,000% higher than a year ago, but down 11 percent from the previous month, with 233 units available.
The Condominium Pricing Index, part of the firm’s monthly Trend Sheet (available at www.themarkcompany.com), represents the price per square foot of a new 10th floor, 1,000-square-foot condominium. It is based on recent sales data, and uses a proprietary quantitative method to measure trends in market demand. It tracks the value of a new construction condominium without the volatility of inventory changes.
The Mark Company Penthouse Pricing Index, which applies the same methodology to a new 30th floor, 2,000-square-foot condominium (1,000 square feet in Downtown Los Angeles), was $1,051 per square foot in Downtown Los Angeles in April, up 8% year over year; $1,915 per square foot in San Francisco, up 19 % from last year; and $1,128 per square foot in Downtown Seattle, up 16% year over year.