Mark Company’s San Francisco New Developments Report Published

• By: mlapeter
• Under: High Rise, Luxury Condo, Market Data, New Developments, Rincon Hill, San Francisco Real Estate

Source: www.markcompany.com

The Mark Company is one of the largest and most well known new development marketing companies (they market the properties and staff the sales centers, amongst other things), and every quarter they release a great report on the state of the market.  Here’s an excerpt:

The fourth quarter of 2008 marked the first quarter since 2001 in which there were no new project openings. Only 615 units entered the market during 2008, compared to 1,988 units in 2007. The sharp decrease in the number of new project openings is due to deteriorating market conditions for for-sale housing, as well as a lack of available project financing. Under current market conditions, it is unlikely that any large new condominium projects not yet under construction will be completed within the next five years.

The median price for all residential units sold in San Francisco during December 2008 was $616,500, representing a decrease of 15.7% compared to the same period a year ago and a decrease of 26.2% compared to the peak of $835,000 reached in May 2007. Despite the decrease, the San Francisco market has experienced less depreciation than the rest of the Bay Area due in part to a much lower foreclosure rate.

The number of new construction condominiums that closed escrow in 2008 increased compared to prior years due to the completion of several large developments that had been pre-selling since 2006. Although many pre-sale buyers fell out of contract as their closing dates approached, enough buyers moved forward with their purchases to push the number of new construction closings in San Francisco to a new all-time high of 1,233 units.

The average price per square foot of new construction closings during the fourth quarer of 2008 was 6% higher than during the fourth quarter of 2007. The increase was primarily due to the commencement of luxury product closings at The Infinity and One Rincon Hill, which began closing units in 2008.

You can learn more about the Mark Company or request a copy of the full report from their website, www.themarkcompany.com.