While sales activity for new condos in San Francisco dropped 27 percent from May to June with the start of a typical summer slowdown in play, the number of purchase contracts signed last month (53) was 66 percent higher on a year-over-year basis, according to sales data from The Mark Company.
That being said, the total volume of new contract signings over the past twelve months remains 10 percent lower than the over same twelve months the year before despite having had an average of 46 percent more inventory from which to choose.
And while the current inventory of new construction condos available to purchase in San Francisco (877) is now running 27 percent lower on a year-over-year basis, and a decrease in inventory typically pushes prices up, the Mark Company’s pricing index for new construction condos in San Francisco dropped 7.8 percent in June to a three-year low and is now running 15.9 percent lower on a year-over-year basis and 20.2 percent below its August 2015 peak.
According to the Mark Company, the weakness in the new construction market “is mostly confined to a trio of new large developments South of Market: Lumina, The Harrison, and One Mission Bay” (which happen to represent the three largest developments with sales offices open in San Francisco).
Or as we first reported a few months ago and shouldn’t come as any surprise: Year-Old Lumina Condos Now Listed at a Loss.