As fall selling season kicked off in San Francisco after Labor Day, we wondered if new uncertainty in the stock market would impact the seemingly endless skyward march of San Francisco home prices. It's still too early to get a clear read on what's happening this fall, but there are some early signs of what may be a slowdown in the crazy boom of the past few years. According to The Mark Company, which tracks condo prices closely, new condo prices dipped by three percent between August and September and condo resale prices fell by two percent. New condo prices now sit at $1,294 per square foot, while resales are at $953 per square.
Condo prices have slipped before during the boom, and prices are heavily affected in San Francisco by seasonality. As The Mark Company notes, monthly appreciation during this time of year is usually low or even negative, and prices are still 15 percent higher for new condos than they were at the same time last year. Inventory of new condos remains extremely low, while inventory of resale condos is at its highest level in two years.
Glenn Kelman, CEO of real estate website Redfin, told the San Francisco Business Times that he's seeing homes get fewer offers, potentially because of the slowing stock market. Redfin's data showed flat prices for single-family homes last month and a drop of 10 percent for condo prices. This could again be due to seasonality, but we'll be watching closely throughout the rest of the fall to see where home prices land.
· Will Fall Selling Season Bring Another Big Home Price Surge [Curbed SF]
· The Mark Company [Official Site]
· Prices for New Condos Slide Downward, Noncommittally [Curbed SF]
· Condo, Home Prices Slip as Market Frenzy Cools [SF Business Times]