Feb 2015 SF New Condominium Prices Up 19% YOY
FEBRUARY 2015 SAN FRANCISCO NEW CONDOMINIUM PRICES RISE 4 PERCENT FROM PREVIOUS MONTH, UP 19 PERCENT OVER A YEAR AGO
San Francisco – March 10, 2015 – San Francisco new condominium prices rose 4 percent in February 2015 from the previous month, according to the Condominium Pricing Index just released by The Mark Company, a leading urban residential marketing and sales firm. Scroll to the bottom to see the trend sheet.
The Mark Company Condominium Pricing Index for February was $1,221 per square foot, which is 19 percent higher than the previous year and four percent higher than the previous month. Tied with October 2014, this four percent increase is the highest monthly increase since April 2014.
New construction inventory was down 7 percent from last month, but 1,715 percent higher than a year ago. “Despite the addition of more than 1,600 units in 2014, there are now a total of 708 new condominium units available for sale in San Francisco,” said Erin Kennelly, senior director of research, The Mark Company.
The Condominium Pricing Index, part of the firm’s monthly Trend Sheet, 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, was $2,097 per square foot in February, up 4 percent from the previous month and 19 percent higher year over year.
The average price per square foot for resale condominiums, which is more volatile than the Condominium Pricing Index, was down 6 percent month over month, and is 3 percent higher than a year ago, according to The Mark Company.
Resale inventory remains extremely low. “There are now only 81 active resale listings, representing only 1.4 months of inventory at the current pace of sales,” noted Kennelly. Six months of inventory is considered the equilibrium between a buyer’s and a seller’s market.
The Mark Company has also released the February Downtown Los Angeles Trend Sheet and Pricing Index, as well as the Downtown Seattle Trend Sheet and Pricing Index.