Will the prices of new condos being built in San Francisco ever slow their upward march? In the first half of last year, San Francisco saw huge prices in the per-square-foot pricing of newly built condos, and $1,000 or more per square became the new norm. Now, according to the latest report from the Mark Company, the city has now reached $1,257 per square foot for new condo construction, up 22 percent over the same time last year. That price, which is meant to track the value of a new condo without being swayed by changes in inventory, represents the expected price per square foot of a new 10th-floor, 1000-square-foot condo.
No relief can be found in the condo resale market, with average prices topping $1,000 per square for the first time ever for previously sold condos. Condo prices have surged even as the rate of growth of single-family-home prices has plateaued. Low inventory, as always these days in San Francisco, is playing a big role in the price growth. There are 651 new condos for sale in the city, which is 372 percent more than were available one year ago. There are just 198 resale condo listings currently on the market, which is less than one month of available inventory. In other words: it's a major, major sellers' market out there for condos.
· The Mark Company [Official Site]
· San Francisco Condo Prices Are Still Way Up Over Last Year [Curbed SF]
· SF's Home Price Growth Fueled by Condos, Not Fancy Houses [Curbed SF]
· Sad Chart Confirms SF Isn't Adding New Housing Fast Enough [Curbed SF]