While sales activity for new condos in San Francisco doubled from April to May with seasonality in play, versus tripling from April to May last year, the number of purchase contracts signed last month (73) was 36 percent lower on a year-over-year basis, according to sales data from The Mark Company.
And the volume of new contract signings over the past twelve months remains 19 percent lower than the twelve months before despite having had an average of 55 percent more inventory from which to choose.
That being said, with a slowdown in the delivery of major new projects, the inventory of new construction condos available to purchase in San Francisco (877) is now running 29 percent lower on a year-over-year basis, the first year-over-year decline in a year.
But despite the decrease in inventory, which typically pushes prices up, the Mark Company’s pricing index for new construction condos in San Francisco dropped another 0.7 percent in May and is now running 11.2 percent lower on a year-over-year basis and 13.4 percent below its August 2015 peak.
Keep in mind that there are around 5,600 units of housing under construction across the city, which does include projects slated for both sales and rentals, but the pipeline has been slowing.
An in related news, did we mention the 11.4 percent list price cut for the Lumina Tower D penthouse unit #36A earlier this week?