Condo Prices Decrease in Key Areas in July
- Aug 18, 2015
San Francisco—A new report by the Mark Co. revealed that new condominium prices decreased in both San Francisco and Seattle in July, and remained flat in Downtown Los Angeles compared to the previous month.
However, all three markets maintained year-over-year price increases.
“We saw a slight decrease in July over last month for resale condominium pricing in San Francisco, falling 1 percent to $1,028 per square foot, and in Downtown Seattle, declining 2 percent to $631 per square foot. Downtown Los Angeles remained unchanged at $544 per square foot,” Erin Kennelly, The Mark Company’s senior director of research, said. “Resale inventory remained low in all three markets, with less than one month of inventory in San Francisco, 1.4 months in Downtown Seattle and 3.6 months in Downtown Los Angeles. Six months inventory represents the balance between a buyer’s and seller’s market.”
The Mark Company Condominium Pricing Index in San Francisco for the month of July registered $1,284 per square foot, a decrease of 1 percent from June, though 16 percent higher than July of 2014.
With 22 units at 6 Mint coming available in July, there are 761 new condominiums available in the city, a 75 percent increase in the number of units year over year, but a 9 percent decrease from June.
The Downtown Seattle Condominium Pricing Index for July was $757 per square foot, a decrease of 2 percent from the previous month, but a 4 percent increase from one year ago. New construction inventory, which consists almost entirely of units at Insignia and Luma, decreased to approximately 376 units in July, a decrease of 6 percent compared to the previous month.
Turning to Downtown Los Angeles, the Condominium Pricing Index for July was $757 per square foot, unchanged from June, and 9 percent higher than one year ago.
According to Kennelly, the prices in Downtown Los Angeles are noteworthy because there is an unusually large gap between the Condominium Pricing Index and the average resale price of $544 per square foot. Additionally, Downtown Los Angeles prices are not following the typical pattern of strong increases during the first half of the year, followed by stagnant prices during the second half of the year.