Austin Klar reports San Francisco condo prices rose to $1,024 per square foot in July, up from $966 in June. Strong absorption rates and low monthly supply suggest buyer demand is outpacing inventory, a trend he expects to continue as interest rates fall and office returns accelerate.
San Francisco's condo and co-op market is actually outperforming the single-family home market right now on a number of different metrics and is bucking seasonal trends. Two measures of supply-demand dynamics, absorption rates and monthly supply, basically the percentage of available homes getting into contract and the pace of sales, are showing higher demand in relation to supply when ordinarily at this time things are slowing down. What's even more abnormal is that prices actually grew both month over month and compared to the same time last year. $966 a foot in June to $1,024 a foot in July, and that's compared to $1,005 last July. Expect these trends to continue, especially as interest rates come down from their yearly highs and as more employers call workers back to the office. Follow me for more Bay Area real estate.
