New Construction Inventory Declined 7 Percent in February to 307 Available Units, According to The Mark Company Trend Sheet
Seattle – March 15, 2016 – Downtown Seattle condominium prices decreased 8 percent in February to $784 per square foot, retreating from a peak of $853 per square foot set in January, according to the Condominium Pricing Index released today by The Mark Company, a leading urban residential marketing and sales firm.
The Mark Company Condominium Pricing Index for Downtown Seattle remains 2 percent higher than the same month last year.
“The decrease was unexpected since February typically marks the beginning of the spring selling season, said Erin Kennelly, senior director of research, The Mark Company. “However, the incremental decrease follows four months of successive increases, indicating a cyclical adjustment rather than a reflection of softening in the market.”
New construction inventory, while decreasing 7 percent compared to January, was still 160 percent higher than one year ago. There are now approximately 307 new condominiums available for sale in Downtown Seattle, with the majority of the remaining inventory divided between Gridiron, Insignia and Luma.
New construction absorption, the number of new condominiums placed into contract, increased 16 percent over the previous month, with 22 units placed into contract in February, an increase of 69 percent year-over-year.
Resale prices moved in the opposite direction of the Condominium Pricing Index, with the average resale price per square foot increasing by 16 percent in February to $707 per square foot, and now stands 15 percent higher than the same month one year ago.
Resale inventory remains extremely low. There are currently 60 active listings, representing only 1.7 months of supply at the current pace of sales. Six months is considered the balance between a buyer’s and a seller’s market.
The Condominium Pricing Index, part of the firm’s monthly Trend Sheet (available at www.themarkcompany.com), represents the price per square foot of a new 10th floor, 1,000-square-foot condominium. It is based on recent sales data, and uses a proprietary quantitative method to measure trends in market demand. It tracks the value of a new construction condominium without the volatility of inventory changes.
The Mark Company has also released the February San Francisco Trend Sheet, the February Downtown Los Angeles Trend Sheet, and the February Downtown San Diego Trend Sheet. All are available for download at www.themarkcompany.com.
About The Mark Company
The Mark Company is one of the nation’s premier urban residential marketing and sales firms. Founded by Alan Mark in 1997, The Mark Company provides a full range of core consulting services including analytics, design, marketing and sales for urban high-rises and suburban attached properties throughout the Western United States. The firm is a trusted partner to global leaders in residential development and finance, providing buyer-driven sales and marketing strategies that produce industry-leading results. The Mark Company has represented more than 10,000 residences and generated over $5 billion in sales for some of the nation’s most notable and successful developments including The Infinity in San Francisco, Evo in Los Angeles and The Martin in Las Vegas. Current projects include 181 Fremont Residences in San Francisco and SL70 in Los Angeles. A subsidiary of Pacific Union International, one of the San Francisco Bay Area’s top-performing resale brokerages, The Mark Company benefits from an enriched leadership team, enhanced technology and added global reach through its affiliation with Christie’s International. For more information, please visit www.themarkcompany.com.