New condo prices took their largest month-on-month tumble in years this November, according to the latest analysis from The Mark Company. Prices were down five percent from October, landing at $1,215 per square foot compared to the previous month's $1,283 per square foot. That means that new condo prices were just four percent higher than at the same time last year, the smallest year-over-year increase since way back in 2013.
Only 40 new construction condos went into contract last month, slow even for November, which is generally a fairly quiet month. New construction absorption was 49 percent lower than at the same time in 2014. And while the prices for new condos were falling, resale condos saw a big six percent jump from $959 per square to $1,022 per square between October and November. However, as The Mark Company's senior director of research Erin Kennelly points out, resale prices are not as reliable as new condo prices because of variations in inventory. Inventory for both new and resale condos remains low. So was this a mere blip on the steady rise of condo prices San Francisco or the start of a new pattern?
· The Mark Company [Official Site]