November 28, 2017

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 ticked down 1 percent in October and is now down 5 percent year over year. The recent decrease is likely due to competing larger condominium developments in South of Market. By contrast, recent closed prices have increased slightly at most small to midsized new-construction developments.
  • There were 55 new condominiums placed into contract last month, which is 50 percent less than the number sold one year ago. However, that is nearly 41 percent higher than the number sold during September. The year-over-year comparative drop in sales volume from October 2016 was skewed due to large numbers of closed sales at The Harrison being published for the first time.
  • There are now 841 new-construction condominiums remaining for sale in San Francisco, down 23 percent on an annual basis. Two new developments, 815 Tennessee and Stage 1075 launched sales in October.  Although there are 1,480 condominiums under construction in the city, 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 increased by 2 percent last month. The average resale price per square foot is now $1,056, which is 5 percent higher year over year. June 2017 marked the first and only month during which the New Construction Index dropped below the average resale price per square foot. Since 2013, the Index has been an average of 23 percent higher than the citywide resale price per square foot. The current differential of only 5.2 percent is evidence of the fierce competition for buyers among new commodity condominium product in South of Market.
  • Resale inventory decreased to 1.8 months during October. Resale prices and sales volume have continued to improve since late 2016. Six months is considered the equilibrium between a buyer’s market and a seller’s market.

 

Download the full San Francisco Trend Sheet.

Downtown Los Angeles

  • The Downtown Los Angeles Condominium Pricing Index increased by 2 percent in October and is 6 percent higher year over year.
  • There were three reported new construction condominium contracts in Downtown Los Angeles last month, reducing inventory to 382 homes. Ten50 is more than 90 percent sold out.
  • The average resale price per square foot decreased by 2 percent last month but is now 31 percent higher on an annual basis.
  • There are currently 101 active resale condominium listings in Downtown Los Angeles, representing a 2.9-month supply of inventory. Six months is considered the equilibrium between a buyer’s market and a seller’s market.

 

Download the full Los Angeles Trend Sheet.

Downtown San Diego

  • The Downtown San Diego Condominium Pricing Index increased by 4 percent last month and is currently 10 percent higher than in October 2016.
  • There are currently 269 new condominiums available in Downtown San Diego, all contained within Bosa’s two new towers: Savina and Pacific Gate.
  • The average resale price per square foot increased by 5 percent last month and is now 1 percent lower than in October 2016.
  • Active resale inventory in Downtown San Diego decreased to a 2.8-month supply during September. Six months is considered the equilibrium between a buyer’s market and a seller’s market.

 

Download the full San Diego Trend Sheet.

Downtown Seattle

  • The rapid increase in the Downtown Seattle Condominium Pricing Index paused in October, dropping 8 percent from September. However, the Index remains 18 percent higher than in October 2016.
  • Only five new condominiums sold last month. The only new condominium developments currently selling in Downtown Seattle are Gridiron (34 units remaining) and Nexus (56 units remaining). Neither development has commenced closings, although Gridiron is expected to begin doing so in the first quarter of 2018.
  • The average resale price per square foot decreased by 3 percent last month and is now 22 percent higher year over year.
  • Resale inventory remains extremely low in Downtown Seattle. There are currently 69 active condominium listings, representing only a 1.2-month supply. Six months is considered the equilibrium between a buyer’s market and a seller’s market.

 

Download the full Seattle Trend Sheet.