SAN FRANCISCO—The condominium pricing index surged 10% last month compared to the previous month. The recent increase has nearly erased the slowdown of the past year. The index experienced month-over-month declines during eight of the past 12 months, but is now only 2% lower than the same month one year ago, according to The Mark Company.
New construction absorption was very strong last month, as 91 new homes were placed into contract. Although this represents slightly fewer than the number sold last month, it is nearly triple the performance of March of last year, a 176% increase. New construction pricing was at $1,232 per square foot last month.
There are now 985 new condominiums available for sale in San Francisco, which is 56% higher than the same month last year, but 20% lower than the recent peak of 1,227 units reached in May of last year.
The average resale price per square foot moved in the opposite direction of the pricing index. The average condominium resale price per square foot in San Francisco decreased by 4% last month to $1,039, and is now approximately equal to the price per square foot from one year ago. There were 234 sales last month, which is a 9% increase year-over-year and an 80% increase month over month.
Resale inventory remains extremely low. There are now 311 active resale condominium listings, representing 1.3 months of inventory.
“Residential real estate has a strong cyclical component, and there was a lot of anxiety among seller's this year about whether or not the pattern would continue. Typically, prices begin to rebound after January, but this year the seasonal decline continued through February–likely due to very poor weather,” Erin Kennelly, senior director of research, The Mark Company, tells GlobeSt.com. “Despite the unusual decline in prices, the number of new construction sales began to increase in February, and by March, the spring rally was confirmed. The condominium pricing index increased by 10% in March compared to the previous month, and more than 90 new condominiums were placed into contract for the second month in a row.”
The Mark Company condominium pricing index is the tool for tracking the value of a new construction condominium without the volatility of inventory changes. The index uses a proprietary quantitative method to model the price per square foot of a new 10th floor, 1,000-square-foot condominium.
SAN FRANCISCO—The condominium pricing index surged 10% last month compared to the previous month. The recent increase has nearly erased the slowdown of the past year. The index experienced month-over-month declines during eight of the past 12 months, but is now only 2% lower than the same month one year ago, according to The Mark Company.
New construction absorption was very strong last month, as 91 new homes were placed into contract. Although this represents slightly fewer than the number sold last month, it is nearly triple the performance of March of last year, a 176% increase. New construction pricing was at $1,232 per square foot last month.
There are now 985 new condominiums available for sale in San Francisco, which is 56% higher than the same month last year, but 20% lower than the recent peak of 1,227 units reached in May of last year.
The average resale price per square foot moved in the opposite direction of the pricing index. The average condominium resale price per square foot in San Francisco decreased by 4% last month to $1,039, and is now approximately equal to the price per square foot from one year ago. There were 234 sales last month, which is a 9% increase year-over-year and an 80% increase month over month.
Resale inventory remains extremely low. There are now 311 active resale condominium listings, representing 1.3 months of inventory.
“Residential real estate has a strong cyclical component, and there was a lot of anxiety among seller's this year about whether or not the pattern would continue. Typically, prices begin to rebound after January, but this year the seasonal decline continued through February–likely due to very poor weather,” Erin Kennelly, senior director of research, The Mark Company, tells GlobeSt.com. “Despite the unusual decline in prices, the number of new construction sales began to increase in February, and by March, the spring rally was confirmed. The condominium pricing index increased by 10% in March compared to the previous month, and more than 90 new condominiums were placed into contract for the second month in a row.”
The Mark Company condominium pricing index is the tool for tracking the value of a new construction condominium without the volatility of inventory changes. The index uses a proprietary quantitative method to model the price per square foot of a new 10th floor, 1,000-square-foot condominium.
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