SAN FRANCISCO—Inventory is still historically low on the West Coast and there was less than one month of condo resale inventory for December. Though The Mark Company's index dropped slightly during December after a November increase, buyer demand remained strong and new construction absorption rose significantly by 72% since that time and 129% since December of last year.

“The 50 basis points jump in the interest rates following the election with anticipation of further increases over the next few years has created a sense of urgency among some homebuyers,” says Pacific Union's chief economist, Selma Hepp. “Buyer demand in the Bay Area is bolstered by a strong job market.”

Boosting inventory are nine new developments, totaling more than 700 units with sales volume of $1.3 billion in San Francisco and Los Angeles. Some of the developments include 815 Tennessee in the Dogpatch neighborhood, The Austin, 288 Pacific in Jackson Square, Laguna Hayes in Hayes Valley and 33 Tehama. The Mark Company has been selected to drive sales for those condos.

The 815 Tennessee boutique development has some of the city's finest restaurants, local retailers and artisans. The community will have 69 units in a historic brick former factory building, GlobeSt.com learns. The building will offer one-, two and three-bedroom residences, as well as a public courtyard, large lobby and roof deck with city and Bay views.

The Austin will feature 100 residences close to Pacific Heights, Nob Hill and the Mid-Market tech hub. The site offers walkable access to Whole Foods Market, public transportation, and restaurants and retailers on Polk Street, GlobeSt.com learns. The development will feature studio, one-bedroom, two-bedroom and penthouse residences, onsite art space, a cafe and Bay Area commute access.

288 Pacific has a limited collection of 33 luxury residences in Jackson Square. This is a district featuring Gold Rush-era charm in the form of brick buildings and warehouses that have been re-imagined as restaurants, art galleries and boutiques.

Laguna Hayes is appropriately on the corner of Hayes and Laguna street. The five-story condominium complex will encompass 29 homes with ground-floor retail, boutique stores, corner bistros and tree-lined streets, GlobeSt.com learns.

33 Tehama with more than 400 luxury rental units is located in SoMa, a highly walkable location. The 35-story tower was designed by Arquitectonica and offers one-bedroom, two-bedroom and penthouse apartments, GlobeSt.com learns.

While The Mark Company is concluding its sales services with San Francisco development, The Harrison, its efforts on the project outperformed projections with double-digit sales in the summer months.

As previously reported, Alan Mark shared some condo trends at the mid-point of last year.

Instant Insights /

Scarcity in Condo Inventory Cranks up Demand

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