October 18, 2017

New Condominium Prices Trending Lower in the City

Get the latest market data for San Francisco condominiums.

Stronger 2017 housing market activity in San Francisco continued into the third quarter. Still, buyers remained constrained by very limited inventory. The quarter ended with fewer overall sales than during the same period last year, and inventory for both single-family homes and condominiums fell by double-digit percentage points.

At the same time, strengthened activity and competition among buyers caused properties to sell faster than they did in the third quarter of 2016 across all price ranges except for $3 million-plus. Bidding wars were common, and seven in 10 homes sold above the asking price, with premiums for single-family homes reaching 16 percent. Buyers of homes priced between $1 million and $2 million are facing more intense competition, and most paid 20 percent more than the asking price.

As a result, the median sales price showed moderate growth. Nevertheless, prices of newly constructed condominiums continued to trend lower, while prices of existing units maintained their solid upward momentum.

Looking Forward: The Bay Area’s strong economic drivers should continue to fuel demand for San Francisco real estate. Despite newly constructed condominiums, inventory levels remain severely undersupplied, which will hold back future home sales activity.

Click here to read the full Q3 2017 San Francisco condominiums real estate report.


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.