Check out these high-level details about the latest new and resale condominium trends in major California markets from experts at Pacific Union subsidiary The Mark Company, then download the full reports.
- The San Francisco Condominium Pricing Index was unchanged month over month in May but increased by 2 percent year over year to $1,180 per square foot.
- New-construction absorption totaled 58 units in May, as sales activity accelerated at 815 Tennessee and 99 Rausch. The inventory of new construction units decreased slightly to 547, as the 37-unit Sutter North development at 1238 Sutter St. began selling.
- Resale activity slowed to 191 transactions in May, down from 258 in April. The average price of resales jumped to $1,444,302, and the average price per square foot rose to $1,172, with both metrics representing their highest monthly peaks since The Mark Company began tracking such data in 2012. Higher-end and luxury units comprised a larger share of the resale pool in May.
- Active resale inventory decreased to 348 units, representing 1.8 months of inventory, well below the six-month equilibrium point between a buyer’s and seller’s market.
Downtown Los Angeles
- The Downtown Los Angeles Condominium Pricing Index was essentially unchanged month over month and year over year, at $749 per square foot. The Penthouse Pricing Index also held steady at $1,214 per square foot.
- The Los Angeles Condominium Pricing Index has essentially been flat for the past four months, at $750, down by 4 percent year over year.
- New construction inventory in Downtown Los Angeles has declined steadily since peaking in February 2016, falling to 380 units on the market this month, 378 of them in the Metropolis project.
- Forty-three resale transactions were reported in May, the most in any month since last September. The average sale price of the resale units was $901,262, and the average price per square foot was $734, up by 24 percent year over year.
- Active resale inventory increased to 123 units in May, the most on the market since July of last year. Still, this reflects just a 2.9-month supply of inventory, well below the six-month equilibrium between a buyer’s and seller’s market.
Downtown San Diego
- The Downtown San Diego Condominium Pricing Index rose to $721 per square foot in May, a 1 percent increase both month over month and year over year and a new high-water mark since The Mark Company began tracking such data in 2014.
- New-construction inventory continued to decline, falling to 176 units amid strong sales activity at Savina and Pacific Gate, which saw a combined 30 units absorbed in May. There are 127 units remaining at Savina and 49 left at Pacific Gate, which reported its first closings in March. Inventory will rise later this summer, when the 41West condos are expected to begin selling.
- Sixty-nine resale transactions closed in May, at an average of $683,940, or $627 per square foot. These represent the highest overall and per-square-foot price tags since August 2017.
- Resale inventory fell to 281 units, after rising to a three-year high of 302 units in May. This translates to 4.1 months of inventory, still below the 6-month equilibrium point between a buyer’s and seller’s market.
Shared with permission from the Pacific Union Blog