January 12, 2018

The Latest West Coast Condominium Trends

Get a glimpse into new and resale condominium prices, sales, and inventory in San Francisco, Los Angeles, San Diego, and Seattle.

San Francisco

• The San Francisco Condominium Pricing Index increased by 2 percent from November to December and is now up 1 percent year over year, as new construction values have fully recovered from a weak second half of 2016. The Index reflects current strengthening market conditions and it at its highest point since March 2017, when the spring market momentum was high.
• There were 47 new condominiums placed in to contract in December, which is 23 percent less than the number closed or in contract in November, reflecting a typical seasonal slowdown due to the holidays. Our sales teams report that while there is some trepidation among buyers due the new tax law regarding mortgage deductions, overall demand remains strong. Buyer traffic has been very active in our developments in the opening week of 2018, and the buying season appears to be starting earlier than in past years. Even the last two weeks of December were seasonally strong with higher than usual traffic numbers.
• There are now 731 new construction condominiums remaining for sale in San Francisco, this is down 27 percent year over year and down 6 percent since November. Although there are 1,480 condominiums under construction, most are contained within large developments that will not be completed for at least two years. Inventory is expected to remain below 1,500 units for the next several years.
• Resale condominium prices were down slightly last month over November, but are up 2 percent year over year. The average resale price per square foot is now $1,015. Resale sales volume declined 20 percent in the last month, as the typical seasonal slowdown in transaction volumes occurred. Sales volume is 8 percent higher on an annual basis, indicative of the stronger 2017 market. Resale inventory decreased to below one month’s supply during December, the lowest it in 2017. Stable demand and low inventory presage a strong first quarter of 2018.

Download the full San Francisco trend sheet.

Los Angeles

• The Downtown Los Angeles Condominium Pricing Index decreased by 1 percent from November to December but remains 3 percent higher year over year.
• There were only two reported new construction condominium contracts in Downtown Los Angeles last month, reducing inventory to 377 homes. New construction inventory is now down 28 percent since December 2016.
• The average resale price per square foot decreased by 5 percent last month but is now 9 percent higher than one year ago.
• There are currently 92 active resale condominium listings in Downtown Los Angeles, representing a 3.2-month supply of inventory. Six months is considered the equilibrium between a buyer’s and a seller’s market. Current inventory is now considered to be in the low supply range.

Download the full Los Angeles trend sheet.

San Diego

• The Downtown San Diego Condominium Pricing Index decreased slightly by 1 percent from November to December but is currently 12 percent higher year over year.
• There are currently 251 new condominiums available in Downtown San Diego, all contained within Bosa’s two new towers: Savina and Pacific Gate. Pacific Gate’s first closings are expected in early 2018.
• The average resale price per square foot was down slightly on a monthly basis in December but was 7 percent higher year over year.
• Active resale inventory in Downtown San Diego decreased to a 2.5-month supply during December. Six months is considered the equilibrium between a buyer’s and a seller’s market. Resale closings slowed by 15 percent from November due to a seasonal slowdown but were up by 50 percent on an annual basis, showing the underlying strength of the San Diego market.

Download the full San Diego trend sheet.

Downtown Seattle

• The rapid increase in the Downtown Seattle Condominium Pricing Index resumed its ascent in Devcember after a pause in October, gaining 7 percent month over month. The Index is now 28 percent higher than one year ago, as Seattle is one of the strongest markets in the U.S.
• There were 27 new condominiums sales last month, as new releases at Nexus drove sales traffic. The only new condominium developments currently selling in Downtown Seattle are Gridiron (30 units remaining) and Nexus (33 units remaining). Neither development has commenced closings, although Gridiron is expected to begin in the first quarter of 2018.
• The average resale price per square foot increased by 7 percent last month, and is now 19 percent higher than in December 2016.
• Resale inventory remains extremely low in Downtown Seattle. There are currently 57 active condominium listings, representing only a 2.3-month supply. Six months is considered the equilibrium between a buyer’s and a seller’s market.

Download the full Seattle trend sheet.

About The Mark Company

The Mark Company is one of the nation’s premier urban residential marketing and sales firms. Founded by Alan Mark in 1997, The Mark Company provides a full range of core consulting services including analytics, design, marketing and sales for urban high-rises and suburban attached properties throughout the Western United States. The firm is a trusted partner to global leaders in residential development and finance, providing buyer-driven sales and marketing strategies that produce industry-leading results. The Mark Company has represented more than 10,000 residences and generated over $5 billion in sales for some of the nation’s most notable and successful developments including The Infinity in San Francisco, Evo in Los Angeles and The Martin in Las Vegas. Current projects include 181 Fremont Residences and The Austin in San Francisco and Cavalleri in Malibu. The Mark Company is a subsidiary of San Francisco-based Pacific Union International, the eighth-largest residential real estate brokerage in the U.S. based on 2016 sales volume of $10.15 billion. Pacific Union merged with Los Angeles-based brokerages John Aaroe Group in December 2016 and Partners Trust in August 2017. This strategic business collaboration links four of the strongest residential real estate firms on the West Coast, supporting combined 2016 production of $12.6 billion by 1,400 real estate professionals in 47 offices throughout California. For more information, please visit www.themarkcompany.com.