SF New Condo “On The Market Report” – Q3 2008
“As part of The Mark Company’s continuing coverage of the San Francisco real estate market, we are pleased to forward our On The Market report for the third quarter of 2008. The median price for all residential units sold in San Francisco during September 2008 was $675,000 representing a decrease of 12.7% compared to the same period a year ago and a decrease of 19.2% compared to the peak of $835,000 reached in May 2007. The San Francisco market has experienced less depreciation due in part to a much lower foreclosure rate than the rest of the Bay Area. New construction closings in condominium projects with more than 20 units reached 230 units in the third quarter of 2008. This was 21.2% lower than the number closed during the third quarter of 2007. However, the number of units closed during the first three quarters of 2008 was 95% of the total number of units closed in all four quarters of 2007. The average price per square foot of new construction closings during the third quarter of 2008 was 12.7% higher than during the third quarter of 2007. The increase was primarily due to the commencement of luxury product closings at The Infinity and One Rincon Hill, which were not yet closing units as of the third quarter of 2007.” – The Mark Company
Some things to keep in mind as 2008 draws to an end: Just this past week Bank of America took San Francisco off of its list of “distressed markets”, indicating that they believe real estate values have bottomed out. Historically December is the best month for buyers to get deals. Sellers and builders are already reacting now in preparation for what is coming ahead, either lowering prices or taking the home off the market until spring. They know that the period from Thanksgiving through New Years is going to be especially painful for them this year in particular, and you as a buyer should take advantage of that.
Hundreds of units in SF that were originally slated for condos are now being marketed as rentals. This will constrict inventory, limit your selection, and make it less likely for builders to offer incentives in 2009 as great as they are offering now.
Prices for new construction in San Francisco have never been more negotiable than right now.
To schedule a tour of any of the new developments in San Francisco including The Infinity, The Hayes, or The Montgomery, call 415-418-8850, enter your information below, or contact me directly:
Climb Real Estate – Vanguard Properties
Climb Real Estate provides this information to the public and our clients and does not guarantee it’s accuracy. Climb Real Estate does not necessarily represent the seller nor the marketing company in any way. For Buyer Representation, contact Climb or learn How to Buy New Developments.
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