February 15, 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 2 percent in January month over month and is now up 6 percent on an annual basis. The Index reflects a strengthening market going into spring and continued decline in new construction supply. Absorption in new construction developments increased by 70 percent.
  • There were 80 new condominiums placed in to contract in January, which is 70 percent more than the number closed or in contract in December, reflecting a typical seasonal increase as we head into the spring market in coming months.
  • There are now 651 new-construction condominiums for sale in San Francisco, down by 34 percent from a year ago and down by 11 percent since December. 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 up by 10 percent in January from December and were up by 16 percent year over year. The average resale price per square foot is now $1,117. Resale sales volume declined by 45 percent in the last month as typical seasonal slowdown in transaction volumes occurred. Sales volume is 15 percent lower on an annual basis, indicating low inventory and transaction volume. Resale inventory increased to a 1.9-month supply during January, as the new year brought listings to the market. Inventory remains low despite this uptick. Stable demand and low inventory foreshadow a strong first quarter.

 

Download the full San Francisco trend sheet.

Downtown Los Angeles

  • The Downtown Los Angeles Condominium Pricing Index increase by 1 percent last month and remains 5 percent higher year over year.
  • There were only four reported new-construction condominium contracts in Downtown Los Angeles in January, reducing inventory to 373 units. New-construction inventory is now down by 28 percent since January of 2017.
  • The average resale price per square foot decreased by 1 percent last month but is now 12 percent higher than the one year ago.
  • There are currently 91 active resale condominium listings in Downtown Los Angeles, representing a 3.5-month supply of inventory. Six months is considered the balance 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.

Downtown San Diego

  • The Downtown San Diego Condominium Pricing Index increased by a slight 1 percent from December to January and is currently 12 percent higher year over year.
  • There are currently 251 new condominiums available in Downtown San Diego, all contained within Bosas 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 up slightly by 4 percent month over month in January, but generally flat on an annual basis.
  • Active resale inventory in Downtown San Diego increased to a 4.3-month supply during January. Six months is considered the balance between a buyer’s and a seller’s market. Resale closings slowed by 27 percent from December due to a seasonal slowdown, but increased by 104 percent year over year, demonstrating the underlying strength of the San Diego condominium market.

 

Download the full San Diego trend sheet.

Downtown Seattle

 The rapid increase in the Downtown Seattle Condominium Pricing Index resumed its ascent last month after a pause in the fourth quarter of 2017, growing by 3 percent from December to January.  The Index is now 19 percent higher than one year ago, as Seattle is one of the strongest markets in the U.S.

  • No new condominiums were reported as sold last month. The only new condominium developments currently selling in Downtown Seattle are Gridiron (29 units remaining) and Nexus (38 units remaining). This appears to be due to seasonal factors rather than a change in trends. Neither development has commenced closings, although Gridiron is expected to begin doing so later in the first quarter of 2018.
  • The average resale price per square foot increased by 14 percent month over month in January and is now 15 percent higher on an annual basis.
  • Resale inventory remains extremely low in Downtown Seattle. There are currently 47 active condominium listings, representing only a 3.1-month supply of inventory. Six months is considered the balance 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.