Search
 

Scarcity in Condo Inventory Cranks up Demand

SAN FRANCISCO—Condominium inventory is still historically low on the West Coast, and during December, buyer demand remained strong and new construction absorption rose significantly, according to The Mark Company.

181 Fremont 181 Fremont Residences is 70 stories tall with 67 residences in 435,000 total square feet.

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.”

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Lisa Brown

Lisa Brown

Lisa Brown is an editor for the south and west regions of GlobeSt.com. She has 25-plus years of real estate experience, with a regional PR role at Grubb & Ellis and a national communications position at MMI. Brown also spent 10 years as executive director at NAIOP San Francisco Bay Area chapter, where she led the organization to achieving its first national award honors and recognition on Capitol Hill. She has written extensively on commercial real estate topics and edited numerous pieces on the subject.

More from this author

Recommended Stories

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.